Mitsubishi Logistics
Integrated Report2022Corporate Philosophy
Engage in sincere and fair businessactivities to secure appropriate profitsand promote steady growth,
appropriately compensating
our stakeholders while contributing
to the realization of an affluent andsustainable society.

■ Editorial
Policy■ Company
Profile (As of March 31, 2022)

Contents
The
Mitsubishi
Logistics Group (theMitsubishi“Group”)Logistics
has issued
the Environmental
Company
nameCorporationand Social Report each year since fiscal 2007 to fulfill its accountability
Head OfficeNihonbashi Dia Building, 19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8630, Japan
Editorial Policy, Tool Map and Contents 1
about the effects of its business activities on society and the environment.
Establishment
April 15, 1887
However, last year, in fiscal 2021, we further enhanced the information to be
Capital and changed the title to¥22,393
million2
Corporate History
published,“Mitsubishi
Logistics Integrated Report.”
2021)
Consolidated:billionmeasures
Non-consolidated:¥184.1 billion
Revenue
This year’s(fiscal
Integrated
Report 2022
introduces¥257.2
the various
and4
Top Message
The number
employees(excluding
45 workers
on leaveprogressof theoftargets
set forofeach4,732
of the six
key themes
establishedin to work outside the Group, 1,195 temporary staff andtheMitsubishi
Logistics
Group
1,308
employees
onloan/dispatchedfromoutsidetheGroup)“Initiatives by the Mitsubishi Logistics Group for ESG Management and the8
At a Glance
The numberof employeesof In1,014(excluding
103provides
employees
SDGs”
announced
in April 2021.
addition,
the Reportan on leave to work for other companies, 183 temporary staff and
the Company
597 employees on loan/dispatched from inside and outside the Group)
10
Introduction of Businesses
overview of the Management Plan (2022-2024) announced in March 2022,
Branches
Yokohama, Nagoya,
Kobe, Fukuoka
anddescribes precisely and in an Tokyo,
easy-to-understandmannerOsaka,
the initiatives
Businesses
trucking; port and harbor transportation; international transportation; marineof Major
the Mitsubishi
Logistics Group, Logistics
including efforts Warehousing;to enhance theInitiatives
for sales,
ESG management
Management
the SDGs
freight transportation; customs clearance;development,
and andadministradisclosure of ESG-related data.
tion of logistics information systems; etc.
Real Estate
Boundary of the Report and Reporting Period

Overview
of initiatives
for ESGManagement
andBuying, selling, leasing and managementof real estate;contractingof construction
work,
its
the SDGs
design and supervision; operation of parking
lots; etc.

14Consolidated
subsidiaries
companies)
Companies
in thescope
Boundaryof TheReportcovers Mitsubishi
Logistics
Corporation(48(theValue-creation story
16
consolidation
TohokuRyoso Transportation Co., Ltd., Sairyo Service Co., Ltd., Dia Pharmaceutical Network Co., Ltd., Tokyo Dia Service Co., Ltd.,
theofReport:“Company”) and Group
companies.
(as of August 31, 2022)

Reporting
Period:themes(materiality
selection
process)
Dia Systems Corporation, Ryoso Transportation Co., Ltd., UnitransSix
Ltd.,key
KeihinNaigai Forwarding
Co., Ltd.,
Touryo Kigyo
Co., Ltd.,

17

This Report covers ouractivities
for theJuki
periodfromCo., Ltd., SII Logistics Inc., Fuji Logistics Support Co., Ltd., Kinko Service Co., Ltd.,
Fujibusiness
Logistics Co.,
Ltd., Tokyo
Transport
Measuresto be Co.,taken,
indicators,
Chubu
Trade WarehousingCo., Ltd., Meiryo Kigyo Co., Ltd., Ryoyo
Transportation
Ltd.,performance
Kyokuryo Warehouse
Co., Ltd.,
April 1, 2021 to March
31, 2022.
To ensure comprehensive
Co., Ltd.,
Shinryo Koun
Co., Ltd., Naigai
Kyushu
Ryoso
Transportation Co., Ltd., Monryo Transport Corpora- 18
disclosure, however, Hanryo
certainKigyo
relevant
information
regardingeventsForwarding Co., Ltd.,andtargetvaluestion, Hakuryo Koun Co., Ltd., Seiho Kaiun Kaisha, Ltd., Saryo Service Co., Ltd., Mitsubishi Logistics America Corporation,that occurred prior toMitsubishi
and/or after
this period
hasbeen included.
Warehouse
California
Corporation,
Mitsubishi Logistics Europe B.V., Fuji Logistics Europe B.V., Mitsubishi Logistics China Co.,
Ltd., Shanghai Qingke Warehouse Management Co., Ltd., Shanghai Linghua Logistics Co., Ltd., Shanghai Linghua Qingsheng Logistics

Publication Date (Previous publication
September2021)Global Forwarding Co., Ltd., Fuji Logistics (China) Co., Ltd., Fuji Logistics (Shanghai) Co., Ltd.,
LingyunCo.,date:
Ltd. Shanghai

MLC2030 Vision/Management Plan

Mitsubishi Logistics Hong Kong Ltd., Fuji Logistics (H.K.) Co., Ltd., Mitsubishi Logistics Thailand Co., Ltd., P.T. Mitsubishi Logistics Indone-

September 2022
Outlineof theCo.,MLC2030
andDia Buil-Tech
Ltd., YokohamaVision
Dia Building
Management
sia, P.T. DIA-JAYA FORWARDING INDONESIA, Fuji Logistics Malaysia SDN.BHD.,
Corporation, Osaka
Dia Buil-Tech Co., Ltd., Kobe Dia Maintenance Co.,
T’ACT Co., Ltd.
(Next planned publication date: September
2023)
the Ltd.,
Management
Plan
Reference Guidelines

Reviewof the Management Plan (2019-2021)
MY Terminals Holdings, Limited, Kusatsu Soko Co., Ltd., Jupiter
Global Limited

Ministry of the Environment: Environmental Reporting Guidelines■ Stock Information (as of March 31, 2022)(Fiscal Year 2018 Version)
Status of stocks■ Global Reporting Initiative (GRI): Sustainability Reporting Guidelines
Authorizedshares220,000,000(GRI
Standards)
Numberof shares Integrated
issued 87,960,739■ IIRC(International
Reporting Council)

Management Plan (2022-2024)■

Sustainability Promotion Team, Sustainability Promotion Division,
Major shareholders
Mitsubishi
Logistics Corporation
Number of shares held Shareholding
Shareholder’sname
Nihonbashi Dia Building,
19-1,
Nihonbashi 1-chome,
Chuo-ku, ratio (%)(Thousands)Tokyo
103-8630,
Japan
The Master Trust Bank of Japan, Ltd. (trust account)
17,46221.5
Meiji+81-3-3278-6451
Yasuda Life Insurance Company
5,153
6.3
TEL:
FAX: +81-3-3278-6694

Financial information

Custody Bank of Japan, Ltd. (trust account)
5,133
6.3
MITSUBISHIESTATE CO., LTD.
3,665
4.5
Tool
Map
STATE STREET BANK AND TRUST COMPANY 505001
2,405
3.0
Tokyo
Marine & Nichido Fire Insurance Co., Ltd.
2,041
2.5
● Flash report (Japanese)
AGC Inc.
1,657
2.0● Flash report (English)
MUFG Bank, Ltd.
1,505
1.9
● Annual report (Japanese)
TAKENAKA CORPORATION
1,505
1.9
● Financial statement (English)
The Nomura Trust and Banking Co., Ltd. (trust funds for retirement
1,414
1.7
benefits, Mitsubishi UFJ Trust and Banking Corporation account)● Notice of Annual General Meeting of Shareholders
Note: 1 In addition to the above, the Company holds 6,751 thousand shares of treasury shares.
Note: 2 MUFG BANK,(Japanese/English)
Ltd. have set 750,000 Mitsubishi Logistics’ shares as trust funds for
retirement ●benefits
for whichvoting rights business
are reserved,
in addition
to the shares stated in Business
report/Interim
report(Japanese)
the table above.
● Consolidated results briefings (Japanese/English)
Note: 3 The “Shareholding ratio” is calculated after excluding treasury shares (6,751,940 shares).
Note: 4 As of May 20, 2022, 6,000,000 treasury shares have been retired.
● Integrated Report (Japanese/English)

Changes in share price (as of August 31, 2022)● Corporate Governance Report (Japanese)

22

Initiatives for Each of
the Six Key Themes
Individuals and Others 7.0%

Securities Companies 1.9%

Safety, Security,
Disaster Response
Other Corporations
Financial Institutionsin Japan
43.9%
26
Environmental
Initiatives
21.4%
Foreign Corporations, etc. 18.1%
Response to TCFD Recommendations
Treasury Shares 7.7% 28
24

DividendCutting-edge
payouts/Payout ratio
Technology, Innovation 30
(¥)

100
80
60
40
20
0

■Interim ■Year-end

Partnerships

Payout ratio

(%)

50 31

43.7

82

Human
Resource Development, 40
34.1
41
32
Employee Satisfaction
60
60
36.5
27.4
30
80

23.3

41
45
30 Human
30
Compliance,
Rights,Gender 35
21

20

13.0

30

39

41

2021

0
2022 (fiscal year) 36

10

14
30
30
Organizational
Governance(Corporate Governance)
15

7
Corporate
20172018 governance
2019
2020

Risk management(Plan)* The Company carried out a reverse stock split at a ratio of 1 share for every 2
shares of Initiatives
common stock,forwithmaintaining
an effective date ofOctober
1, 2017. Accordingly,
andstrengthening
the year-end dividend for fiscal 2017 is an amount that takes into account thisthe compliance systemreverse stock split.

40
42

Initiatives for improving compliance awareness 43
Initiatives for communication with stakeholders 44
Introduction of officers (skills matrix)

4,000

21

Classification by types of shareholders

Number of shareholders
7,203
Stock exchange
listingPrimeof theReport
Tokyo Stock Exchange
Contacts
for Inquiries
RegardingtheMarket
Integrated
Securities code
9301

Share price(¥)

20

Subsidiaries and Affiliates Accounted for by the Equity Method (3 companies)45

Non-financial information
3,000

2,000

You may view various data and the reference table for Global
Reporting Initiative (GRI): Sustainability Reporting Guidelines(GRI Standards) on Mitsubishi Logistics’ Web site.

“Extended version”
HOME ▶ ESG/SDGs ▶ Integrated Report ▶ Extended version

Statement Supporting the UN Global Compact
Practice of the UN Global Compact’s 10 principles 48
Trading volume(million shares)

20

Company Profile and Stock Information 49
10“GRI Guidelines reference table”
4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8
ESG/SDGs ▶2017
Integrated Report ▶ 2018
Reference table for GRI
HOME ▶
20162019 guideline
2020
2021
2022

0

* The Company carried out a reverse stock split at a ratio of 1 share for every 2 shares of common stock, with an effective date of October 1, 2017. Accordingly, the share priceand trading volume prior to September 2017 are calculated taking into account this reverse stock split.

Mitsubishi
Logistics
Integrated
Report2022
Mitsubishi
Logistics
Integrated
Report2022

149

Corporate History

The Mitsubishi Logistics Group, leading the way into
a new era and continuing to grow together with socialand economic changes
The Company was founded in 1887 in Fukagawa, Tokyo, after absorbing the warehousing business from the former
Mitsubishi Company. For over 130 years, we have been engaged in the Logistics Business through the organic integrationof the Overland Transportation, Port and Harbor Transportation, and International Transportation Businesses centering on
the Warehousing and Distribution Business. Since the mid-1950s, we have been developing the Real Estate Business,
expanding our business domain from leased buildings constructed on company-owned property to the sale andleasing of homes and the management of retail facilities.

1887

1900

1950

Established as Tokyo Warehouse Limited Company,
headquartered in Fukagawa, Tokyo, after absorbing
the warehousing business from Mitsubishi Company(founded in March 1880).

1900

December 1893

Reorganized the company and changed
the name to Tokyo Warehouse Co., Ltd.

December 1902

Established Kobe Branch.

November 1907

1950

1887

April 1887

November 1962
Constructed a multi-purpose rental building
for data centers, warehousing rooms andresidential units in Fukagawa, Tokyo, andstarted the business of leased buildings forcomputer processing centers.
(The Company subsequently made a full-scale entry into the realestate business, constructing rental facilities, including buildings
for computer processing centers, office buildings and commercial
facilities, and continuing with the sale of condominiums.)
1973 Tokyo Dia Building▶

Fiscal 1907 (non-consolidated)
Operating revenue:¥860,000
Operating income:¥320,000

Completed an integrated land and sea
cargo handling facility for shipping
freight at Kobe Port, and establisheda system for the port Warehousing Business with links to railtransport (later the Port and Harbor Transportation business).

Fiscal 1962 (non-consolidated)

April 1963
January 1970
April 1971
September 1973
April 1984
October 1986
April 1987

Made a full-scale entry into the trucking business.
Established a warehousing company in California, U.S.
Made a full-scale entry into the air freight business.
Established a rental building for computer-processing
centers in Shinkawa, Tokyo (Tokyo Dia Building)Established a transportation company in Singapore.
Established a company engaged in informationrelated business.
Celebrated the centennial of the Company’s foundation.
Fiscal 1992 (non-consolidated)

1992

March 1918
Changed name to Mitsubishi Warehouse Co., Ltd.
September 1923 Suffered damage in the Great Kanto Earthquake.

January 1931

Fiscal 1930 (non-consolidated)

Inaugurated Japan’s first trunk-room
service in Edobashi (present-day
Nihonbashi), Tokyo.

Operating revenue:¥8,860,000
Operating income:¥870,000▲1930 Edobashi Warehouse Building

2

Listed on the Tokyo Stock Exchange.

Mitsubishi Logistics Integrated Report 2022

Operating revenue:¥124.4 billion
Operating income:¥10.7 billion

Built high-performance warehouses
at each branch (approximately 83,000 m2)
and declared the first year of our warehouse remodeling.

▲1907 Wada Terminal, Kobe

May 1949

Operating revenue:¥6,727 million
Operating income:¥628 million

September 1992 Constructed rental facilities, including retailfacilities and office buildings, at Harborland, Kobe.
June 1993
Established a warehousing company in Indonesia
January 1995
Suffered damage in the Great Hanshin Earthquake
February
Established a transportation company in the
Netherlands.
April 1996
Established a warehousing company in China.
June
Changed English name to Mitsubishi Logistics
Corporation.

1999

Fiscal 1999 (consolidated)

Made a full-scale entry into the refrigerated
warehouse business.

Operating revenue:¥125.8 billion
Operating income:¥11.1 billion(Constructed refrigerated warehouses in Ohi,Tokyo in June 1999 and in Rokko, Kobe in
December 2002.)◀1999 Automated warehouse(Ohi Refrigerated Warehouse)

2000

2020

2000

June 2017

Certified as an Authorized Customs Broker(AEO customs)
Completed the MM2100 Distribution
Center in Indonesia.
Opened the first overseas Disaster-Resistantand Eco-Friendly Warehouse.

October▲2005
Built North Building, Sakurajima
Distribution Center No. 2 (Comprehensive
Efficiency Plan No. 1 under the Logistics
Efficiency Improvement Act).

▲2006
Yokohama Bay Quarter
Disaster-Resistant Facility

August 2006
January 2007
April 2008

Disaster-Resistant Facility

The first Disaster-Resistantand Eco-Friendly Warehouse
Disaster-Resistant and EcoFriendly Warehouses havebeen constructed in several
domestic areas since theconstruction of the firstwarehouse.

September 2014 Completed Nihonbashi Dia Building.
Rebuilt the warehouse building(head office, trunk room) ownedin Edobashi, Tokyo, and constructeda Disaster-Resistant and Eco-Friendly
Office Building.

Disaster-Resistant Facility▲July 2018
Completed Ibaraki Distribution
Center No. 4 in Osaka.

Disaster-Resistant Facility▲November 2019
Completed Seishin Distribution
Center Phase 2 Building in Kobe.

2020

Constructed a retail facility at Yokohama Portside.
Formulated our Environmental Policy.
Certified as an Authorized Warehouse Operator(AEO warehouse)
October
Enacted our Quality Declaration.
September 2010 Conducted a tender offer for the shares of Fuji
Logistics Co., Ltd., turning the company and its
10 subsidiaries into our consolidated subsidiaries.
March 2011
Suffered damage in the Great East Japan Earthquake.
October 2012
Completed Ibaraki Distribution Center No. 3 in Osaka.

Disaster-Resistant Facility

Disaster-Resistant Facility▲February 2020
Completed Minamihonmoku
Distribution Center in Yokohama.

▲October 2020
Completed Misato Distribution
Center No. 2 Phase 2 building in
Saitama Prefecture

April 2021

Fiscal 2021 (consolidated)

Announced “Initiatives by the Mitsubishi
Logistics Group for ESG Management andthe SDGs”

Operating revenue:¥257.2 billion
Operating income:¥18.1 billion

July 2021

Opened “SharE Center misato”
in Misato City, Saitama Prefecture

April 2022

Celebrated the 135th anniversary of theCompany’s foundation

Disaster-Resistant Facility

Disaster-Resistant Facility◀September 2015
Completed expansion of the
Tobishima Distribution Center,
Nagoya.

Mitsubishi Logistics Integrated Report 2022

3

Top Message

Mitsubishi Logistics Group focuses on global environmentfriendly activities and engages in sincere and fair businessactivities, contributing to the realization of an affluent andsustainable society.

Masao Fujikura
Representative Director andPresident

The MLC2030 Vision

Contributing to the improvement of customer’s value, we offer comprehensive
logistics solutions to the management of customer’s supply chains, fromprocurement to distribution/sales, as their partner.

4

Mitsubishi Logistics Integrated Report 2022

Introduction
Mitsubishi Logistics continues to uphold its corporate philosophy, which states, “Engage insincere and fair business activities to secure appropriate profits and promote steady growth,
appropriately compensating our stakeholders while contributing to the realization of an affluent
and sustainable society.” To realize this corporate philosophy, the Group has stipulated the Codeof Conduct.
Our Group companies work in cooperation to carry out our Logistics Business both in Japanand around the world, organically and comprehensively managing each business area throughour information network, starting with our core Warehousing Business, and including Overland
Transportation, Port and Harbor Transportation, and International Transportation. Our Real EstateBusiness focuses on leased buildings constructed on company-owned property. Of especial
note, the involvement of our logistics operations in every industry countrywide provides a key
function in the economic foundation as a highly public social infrastructure not only under normal
circumstances, but also in case of natural disasters or other emergencies. We continue to makethe utmost effort to support the daily lives of people everywhere and the business activities of ourcustomers at every level of product procurement, production and sales.

First Year of the Management Plan (2022–2024)
The current fiscal year is the first year of the Management Plan (2022-2024), which started in
April 2022. Despite signs of active freight movement in some areas, including e-commercemarkets, due to the global COVID-19 pandemic since the year before last, the economy in Japanand overseas remained unstable, partly because of increases in energy, food, and raw material
prices accelerated by the invasion of Ukraine by Russia.
On the other hand, new business opportunities are being created as a result of new factors
such as technological innovation through DX (Digital Transformation) and the realization of adecarbonized society through GX (Green Transformation).
In 2019, the Group defined the ideal image of the Mitsubishi Logistics Group, the “MLC2030
Vision” (see page 20) that we ought to pursue towards the year 2030.

The Group positioned the previous Management Plan (2019-2021) as the first stage to make aleap toward the achievement of the MLC2030 Vision, and we continued to provide safe, highquality and socially useful services centering on our core Warehousing and Distribution Business,
strengthened the business foundations of the priority areas, established a system that leverages
new technologies, and increased shareholder returns, despite the unforeseen businessenvironment caused by the global COVID-19 pandemic. In this new Management Plan (20222024), which forms the second stage, we established five basic policies centered onstrengthening profitability. In terms of financial targets, we set target values for operating revenue,
operating income, and, for the first time, ROE, and also clarified our capital allocation. We will
accelerate the reduction of cross-shareholdings after continuously verifying the rationality of suchholdings, and use the proceeds from their sale for strategic investment (DX, IT-related investment,
new business development, M&A, environmental initiatives, etc.) and for shareholder returns.
Based on a solid revenue base and an appropriate financial foundation, we will work to further
enhance shareholder returns, increase capital efficiency, and further improve corporate value.
Mitsubishi Logistics Integrated Report 2022

5

Top Message

Corporate Social Responsibility
With the establishment of our Code of Conduct in 1997, we have clearly demonstrated ourstance and approach toward further enhancing our level of adherence to relevant laws andregulations, disclosing appropriate corporate information, addressing and resolving global
environmental issues, and providing safe, high-quality and socially useful services. In addition, theCompany approved and declared in May 2014 its support for the UN
Global Compact, which is a set of universally accepted CSR-related
principles. The Company believes that complying with internationallyaccepted norms in the areas of human rights, labor, the environment andanti-corruption in its business activities and fulfilling its social responsibility
will lead to an affluent and sustainable society.
Our logistics and real estate business activities are deeply connected tosociety. To earn recognition for the value of our existence as a member of society and continue togrow in the future, we must listen to the voices of each stakeholder and steadily respond to thechanges in the business environment and social landscape. In particular, taking into account theincreased demand for reducing natural disaster risk stemming from the global increase andintensification of natural disasters that are believed to be caused by climate change, we arepromoting the construction of Disaster-Resistant and Eco-Friendly Warehouses equipped withreinforced disaster-prevention functions and enhanced global environmental measures, as well as
Disaster-Resistant and Eco-Friendly Office Buildings that have similar functions.
Furthermore, with regard to climate change, in June 2022 we announced our endorsement of
the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and also
participated in the TCFD Consortium. This latest Integrated Report 2022 also discloses
information on climate change based on the TCFD framework, in accordance with therequirements of the Corporate Governance Code (see page 28). Details are posted on our

website. By classifying the risks andopportunities, we were able to confirm the issues
that need to be addressed and new business
opportunities. Going forward, we will continue towork on our climate change response.
Following on from the previous fiscal year, we
worked on business continuity while implementing measures to prevent COVID-19. As a logistics
company, and as a real estate business operator, I believe that we were able to respond to theongoing risks and fulfill our corporate social responsibility.

6

Mitsubishi Logistics Integrated Report 2022

Further Promotion of Initiatives for ESG Management and the SDGs
In April 2021, in order to respond to calls from stakeholders, we announced the “Initiatives by the
Mitsubishi Logistics Group for ESG Management and the SDGs” based on our corporate
philosophy, the MLC2030 Vision and our corporate activities to date as explained above, andestablished six key themes that we are focusing on (see page 14). These initiatives are basedon the Group’s experience of working collaboratively to overcome the Great Hanshin Earthquakethat occurred on January 17, 1995 and the Great East Japan Earthquake that occurred on
March 11, 2011 and to respond to customer requests. The concepts of Disaster-Resistant and
Eco-Friendly Warehouses and Disaster-Resistant and Eco-Friendly Office Buildings that I
explained when discussing climate change were born from such experiences. Disaster-Resistant
Facilities are prepared not just for climate change but also for earthquakes.
The Management Plan (2022-2024) was formulated based on the content of the “Initiatives

by the Mitsubishi Logistics Group for ESG Management and the SDGs,” and we haveestablished measures on which to focus during the period of the plan in order to achieve thegoals of the six key themes.
While overlapping with the key themes, these initiatives will serve to create and provide newvalue and realize diversity in our workstyles by promoting innovation and building partnerships
based on the two principles of valuing safety and security and taking care of the environment.
This effort is linked to the spirit of the Three Principles of Mitsubishi’s Business Management
Philosophy (see page 15), which has been passed down throughout the history of the

Mitsubishi Group.
We will promote high-quality initiatives as specific initiatives to reliably achieve the targets set in
our Initiatives for ESG Management and the SDGs, including through progress management by
the Sustainability Committee, periodic inspection and replacement of relevant measures and
KPIs, and expanded communication with internal and external parties through resources such as
the Integrated Report and the Group’s official website. In addition, we recently increased some of
the target values set in the six key themes. Following the publication of this Report, we will
strengthen the functions of the Sustainability Committee and establish a new dedicatedorganization to strongly promote sustainability initiatives.
We aim to create value and achieve growth by reinforcing the Group’s commitment to“contributing to the realization of an affluent and sustainable society through our corporate
activities,” and working together with our customers, partners, and other parties to create a
new society.
We ask for your continued understanding and support.

Mitsubishi Logistics Integrated Report 2022

7

At a Glance
Financial Items

Operating revenue
Logistics Business
Real Estate BusinessInter-segment transactionsFiscal 2012

Fiscal 2013

Fiscal 2014

Fiscal 2015

Fiscal 2016

(year ended
March 31, 2013)(actual results)(year ended
March 31, 2014)(actual results)(year ended
March 31, 2015)(actual results)(year ended
March 31, 2016)(actual results)(year ended
March 31, 2017)(actual results)(million yen)

192,260

198,161

204,362

206,831208,718(million yen)(million yen)

155,322
38,749(1,810)

162,481
37,484(1,804)

170,40235,941(1,981)

169,006
39,876(2,051)

167,90742,894(2,083)(million yen)(million yen)

12,305

12,148

11,44911,30912,748Logistics Business
Real Estate Business
Corporate expenses

(million yen)(million yen)

5,572
11,107(4,375)

6,816
9,702
(4,370)

7,204
9,166
(4,921)

5,579
10,614(4,885)

6,661
11,719(5,633)Non-operating income (loss)

(million yen)

2,221

1,965

3,007

2,716

3,308

Ordinary income(million yen)

14,526

14,113

14,456

14,025

16,056Extraordinary income (loss)

(million yen)

(804)

288

395

645

(260)

Profit before income taxes

(million yen)

13,721

14,402

14,851

14,67015,796

Profit attributable to owners of parent(million yen)

8,591

8,520

9,133

9,350

10,665

EBITDA (Operating Income + Depreciation)

(million yen)

24,402

24,66524,83825,13925,673

Amounts per share of profit attributable toowners of parent/Earnings per share

(yen)

49.02

48.62

52.12

53.37

60.88

Interim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 6

Interim 6
Term-end 8

(%)

24.5

24.7

23.0

22.5

23.0

Total assets

(million yen)

375,180

396,238

433,041

413,264

435,354

Total liabilities

(million yen)

147,352

159,596

169,952

155,740

158,484

Total net assets

(million yen)

227,827

236,641

263,089

257,524

276,870

Net assets per share(yen)

1,288.42

1,337.56

1,486.99

1,455.06

1,565.27

Equity ratio

(%)

60.2

59.2

60.2

61.7

63.0

Return on investment (ROE)

(%)

3.9

3.7

3.7

3.6

4.0

Return on assets (ROA)

(%)

2.4

2.2

2.2

2.2

2.5

Depreciation

(million yen)

12,097

12,517

13,38913,83012,925

Increase in non-current assets(capital investment amount)

(million yen)

17,723

23,674

24,462

8,841

27,336

Cash flows from operating activities

(million yen)

19,552

19,701

20,691

17,246

21,466

Cash flows from investing activities

(million yen)

(16,513)(23,144)(20,562)(7,032)(22,270)

Cash flows from financing activities

(million yen)

1,760

11,634

1,638(7,927)(7,819)Cash and cash equivalents at
the end of the year(million yen)

32,461

41,23643,27645,65836,921

Operating income(million yen)Amounts per share of cash dividends applicable(yen)to the year/Annual dividend per share
Dividend payout ratio

Cumulative number of Disaster-Resistant
Eco-Friendly Warehouses and DisasterResistant Eco-Friendly Office Buildings

Non-financial Items
CO2 emissions per revenue

CO2 emissions
80

75.9

(Unit: thousand t-CO2)(Unit: t-CO2/100 million yen)

35.2

65.5
60

58.7

59.6

30

32.2

12
28.6

27.5

10
23.2

40

20

20

10

■Building

15

40
73.2

(Unit: buildings)■Warehouse

9
5

10

8

13

13

9

9

4

4

6

5
4
0

0
2017 2018 2019 2020 2021

8

Mitsubishi Logistics Integrated Report 2022

(FY)

4

4

0
2017 2018 2019 2020 2021

(FY)

2017 2018 2019 2020 2021

(FY)

“Financial Data”
HOME ▶ IR information ▶ Financial Data

Fiscal 2021

Fiscal 2017

Fiscal 2018

Fiscal 2019

Fiscal 2020

Fiscal 2021

Fiscal 2022

(year ended
March 31, 2018)(actual results)(year ended
March 31, 2019)(actual results)(year ended
March 31, 2020)(actual results)(year ended
March 31, 2021)(actual results)(year ended
March 31, 2022)(actual results)(year ending
March 31, 2023)(forecast*3)

Fiscal 2024

(year ended March 31, (year ending March 31,2022) (Management Plan 2025) (Management Plan
(2019-2021) targets)(2022-2024) targets)

215,407

227,185

229,057

213,729

257,230

270,000

240,000

260,000

181,277
36,025(1,895)

190,434
38,679(1,928)

189,709
41,199(1,851)

179,255
36,153(1,679)215,240
43,662(1,672)

ーーー

198,700
43,600(2,300)215,000
46,800(1,800)12,421

12,66012,195

11,735

18,14418,80014,50020,000

7,662
10,181(5,422)

7,609
10,783(5,731)

7,184
10,859(5,847)

7,232
10,038(5,535)

13,703
10,316(5,875)

ー
ー
ー

9,200
10,700(5,400)14,00011,600(5,600)

3,739

4,673

4,626

4,278

5,006

ー

ー

ー

16,16017,333

16,822

16,01323,15125,30017,100

ー

(790)

(541)

(84)

40,097

2,773

ー

ー

ー

15,37016,792

16,737

56,111

25,924ーーー

10,517

11,564

11,851

39,16017,892

24,000ーー

25,65626,447

26,59533,610ー

30,100ー*1

132.03137.31462.28219.47299.53ーーInterim 7*1
Term-end 14

Interim 15
Term-end 30

Interim 30
Term-end 30

Interim 30
Term-end 30

Interim 39
Term-end 41

Interim 41
Term-end 41

ー

ー

23.3

25,168120.07

34.1

43.7

13.0

36.5

27.4

ー

ー

462,031*2

482,575

468,243535,761

562,187ーーー

167,480*2

183,470

181,886

208,932

214,427ーーー

299,104

286,356

326,829

347,759

ーーー

3,330.71*1

3,381.20

3,298.18

3,914.63

4,238.85

ー

ー

ー

63.1

*2

294,550

61.4

60.5

60.4

61.2

ー

ー

ー

3.7

3.9

4.1

12.9

5.4

ー

ー

7.0

2.3

2.4

2.5

7.8

3.3

ー

ー

ー

12,747

12,995

14,252

14,86015,465ーーー

21,582

18,036

26,38738,81742,383ーーー

21,481

23,352

17,62440,17636,216ーーー(22,219)(31,786)(18,022)(14,002)(29,221)

ー

ー

ー

3,419

12,066(2,359)(5,270)(16,518)

ーーー

39,58042,97240,541

61,36752,505ーーー*1 A reverse stock split was conducted on October 1, 2017 at a ratio of one share for every two shares of common stock.
*2 The Company has applied “Partial Amendments to ‘Accounting Standard for Tax Effect Accounting’” (Accounting Standards Board of Japan Statement No. 28, February 16, 2018)beginning from fiscal 2018. The consolidated financial position for fiscal 2017 has been retrospectively adjusted to reflect the application of the Standard, etc.
*3 Forecast following revisions to FY2022 1Q

Total number of people who received
compliance education*4
(Unit: persons)Ratio of new employees
retained after three years Men

10,0008,386

8,709 8,742

100.0

100

9,187 9,251

95.6

93.8

7,500

90

5,000

94.7
91.7

(Unit: %)

Women
100.0

25

96.2

20

96.6
94.4

Number of employees
taking child-care leave 

90.9

16

15
13
13

10
70

0

5

0
2017 2018 2019 2020 2021

(FY)

*4 Total number of participants (cumulative number ofparticipants during each fiscal year) for all Group
companies■Women
22

80

2,500

(Unit: persons)■Men02017 2018 2019 2020 2021

(FY)

7
5

10

10

9

9
6

2
1
1
2017 2018 2019 2020 2021

(FY)

Mitsubishi Logistics Integrated Report 2022

9

Introduction of Businesses

We support people’s affluent lives and corporate activities
through the Logistics Business and the Real Estate Business.
The Mitsubishi Logistics Group provides high-quality services to support people’s affluent lives andcorporate activities through the Logistics Businesses centering on the Warehousing and Distribution
Business and the Real Estate Businesses centering on the leasing of buildings.

Warehousing and Distribution Business

Overland Transportation BusinessWe are able to meet a broad range ofcustomized logistics needs through the full
integration of warehouses and distribution
centers, which are located at major ports
and key inland transportation areas
nationwide; our transportation and delivery
networks; and the logistics information
systems that organically link them. In this business, we manage fixed
temperature storage and refrigerated warehouses for pharmaceuticals
and fresh and processed foods as well as facilities suited to e-commerce
logistics in addition to ordinary warehouses for room temperature storage
to ensure the provision of safe and efficient storage/distribution
processing/delivery services using our original information technology andthe latest technology and facilities in order to respond to rapid
technological innovation (logistics DX). Meanwhile, we strive to reduce theenvironmental impact by promoting green management. Furthermore, we
are active in the construction of advanced facilities that aim to coordinate
with local communities not only in Japan but also overseas under theconcept of Disaster-Resistant and Eco-Friendly Warehouse equipped witha solar power generation system and emergency power generators.

In collaboration with excellent local
counterparts and K.R.S. Corporation, withwhich we have formed a new businessalliance, we extend and reinforce theoptimal distribution system for eachcustomer through a tactical combinationof our national, trunk-line transit network
and independent collection and delivery services linking local areas. We
are expanding transportation/delivery operations mainly through Ryoso
Transportation Co., Ltd. for foods, beverages and miscellaneous goods,
and through Dia Pharmaceutical Network Co., Ltd. for pharmaceuticals.
We offer cargo feature-specific, diversified transportation/delivery
services that include ocean freight container transportation for importand export cargo by Ryoso Transportation Co., Ltd., and thetransportation and installation of heavy goods such as plant facilities by
Fuji Logistics Co., Ltd.
Moreover, we endeavor to realize eco-friendly, safe and securetransportation services incorporating modal shifts by drawing on our
information technology and promoting green management. Furthermore,with DP-Cool, a temperature-controlled pharmaceuticals delivery service
with enhanced temperature control and security measures, we strive torealize further sophistication of transportation quality.

Port and Harbor Transportation Business

International Transportation BusinessWe provide secure high-quality logistics
services including container terminal
operations for integrated port andharbor transportation at all major
Japanese ports, namely Tokyo,
Yokohama, Nagoya, Osaka, Kobe and
Hakata, to meet every kind of customer
need. We also offer a wide range of other marine shipping related
services such as importing/exporting of vessels, ship registration,
and agency operations for special ships such as oil-drilling rigs.

In response to increasingly diversifying
customers’ logistics needs, we propose
optimum transportation routes door-to-doorworldwide tailored to every customer’s
request by taking advantage of our global
network and a variety of transportationmeans such as vessels, aircraft, railways
and trucks. Meanwhile, the Group’s overseas operating bases provide
comprehensive logistics services such as cargo transportation, customs
clearance and storage of goods, as well as logistics related support
services such as consulting on legal systems, procedures and tariff costs
utilizing economic partnership agreements in the respective areas forcustomers who plan to launch into foreign markets. We will not limit
ourselves only to transport operations, and will further promote worldwide
our logistics know-how, which the Company has accumulated over its
history of more than 130 years.

Logistics Business

83.1%

215,240 million

Operating revenue ¥Operatingrevenuecompared withfiscal 2021

Real Estate Business16.9%

We are involved in the Real Estate Business in all six major cities of Japan—Tokyo, Yokohama,
Nagoya, Osaka, Kobe and Fukuoka. In addition to activities such as the redevelopment ofproperties based on the optimum application of each property’s features and the leasing ofapproximately 50 real estate facilities (offices, retail facilities and residences), totaling almost
1 million m2 of total floor space, we are involved in the sales of condominiums. We are also
active in developing Disaster-Resistant and Eco-Friendly Office Buildings, which will help ourcustomers enhance their business continuity and reduce their environmental burden.

10

Mitsubishi Logistics Integrated Report 2022

43,662 million

Operating revenue ¥Logistics Business,

Warehousing and Distribution Business, Overland Transportation BusinessCurrently, the Japanese logistics industry is required to promote DX, respond to issues
such as labor shortages, achieve SDGs, and address ESG.
The Mitsubishi Logistics Group’s Warehousing and Distribution Business and Overland
Transportation Business are actively promoting a reduction in environmental impact andthe use of cutting-edge technology. By reflecting the values of external partners anddiverse human resources in our logistics services, we will create new value and continue
to strive to resolve social issues and achieve business growth.
Segment overview

Eiichi Kato

Operating revenue (Unit: ¥billion)

Warehousing and Distribution Business

General Manager,
Warehousing and Distribution
Business Division

56.507 55.954 58.562

The launch of SharE Center misato and apharmaceutical distribution center contributed toour business performance.
Fiscal 2021 operating revenue¥

58,562 million (up 4.7％ year on year)
2019

2020

2021

(FY)

Operating revenue (Unit: ¥billion)

Overland Transportation Business

Sales increased as a result of receiving contracts
for distribution center operations and the recovery
in customers’ freight volume.

52.13248.21452.017

Fiscal 2021 operating revenue¥

52,017 million (up 7.9％ year on year)
2019

2020

2021

(FY)

Business strategy
Warehousing and Distribution Business
Expand businesscentered on thegrowth of priority
areas
Create new value
using cutting-edge
technology
Distribution center
management that
contributes to theresolution of social
issues● Restructure the organization in line with businessstrategy and optimize management resources● Develop logistics bases and networks in Japanand overseas● Improve the efficiency of the entire supply chain bybuilding a logistics data platform● Improve productivity through systemization anddevelop new services

Overland Transportation Business
Expand businesscentered on the growthof priority areas
Utilize cutting-edge
technology in the Overland
Transportation Business

Warehouses in Japan and overseas
equipment that reduces the environmental impact

overseas● Further improve the quality of pharmaceuticallogistics services● Visualize various transportation information

through the logistics data platform● Provide safe and secure food/beverage and● Expand Disaster-Resistant and Eco-Friendly● Promote the introduction of LED lighting and other● Develop cold chain services in Japan and

Collaborate withexternal partners toresolve social issues

pharmaceutical transportation/delivery services
through appropriate temperature control● Develop cryogenic transportation/delivery services
that can be used in the medical field● Reduce the environmental impact through joint
verification tests for the visualization of CO2
emissions

Business alliance with K.R.S. Corporation in the fields of food and pharmaceuticals distribution
In January 2022, Mitsubishi Logistics Corporation and K.R.S.
Corporation announced that they have entered into abusiness alliance agreement.
As expectations for cold chain technology rise due toincreased demand for chilled and frozen foods and theissuance of guidelines for appropriate distribution of medicinaldrugs (GDP: Good Distribution Practice), we will promote theprovision of high-quality logistics services and the joint
development of new services by combining the logistics
networks and expertise of both companies.

Mitsubishi Logistics Integrated Report 2022

11

Introduction of Businesses

Logistics Business,

Port and Harbor Transportation Business
The Mitsubishi Logistics Group’s Port and Harbor Transportation Business has continued
to grow along with economic development, with our top priority being contributions tosocio-economic development through the port and harbor transportation business atmajor Japanese ports. We aim to secure stable profits by further enhancing thecompetitiveness of the port and harbor transportation business by leveraging its cargohandling services, which rank the highest globally for efficiency, and by steadily
implementing the following business strategies.
Operating revenue (Unit: ¥billion)

Segment overview

Seiji Ueda
General Manager,
Port and Harbor Transportation
Business Division

The container handling volume remained at the same level
as the previous year, and the freight handling volume of
conventional vessels and car carriers recovered.

23.29521.33222.950Fiscal 2021 operating revenue

22,950 million* (up 7.6％ year on year)¥* Does not include revenue from shipping related services such as ship
registration and agency operations.

2019

2020

2021

(FY)

Business strategy
Expand business and enhancecompetitiveness of the Harbor
Transportation Business Division● Expand the conventional shipping freight business and the car carrier business● Strategic operation of independently operated container terminals (Osaka: Nanko C-9, Kobe: Rokko C-4)

Increase profit margins and improve
profitability● Improve profit margins by streamlining operations and reviewing costs at container terminals

Expand logistics operations related tocargo handling work on vessels andship registration operations● Acquire new business by incorporating the needs of shipping companies and shippers related to cargo handling work on vessels● Improve profitability by reviewing work systems, etc. for unprofitable operations at subsidiaries under our jurisdiction● Strengthen relationships with existing business partners, and strengthen sales activities to expand the handling of ship

registration operations

Undertook agency operations related to the Shimane andYamaguchi offshore exploratory gas field drilling project
In April 2022, we undertook agency operations for the Shimane and Yamaguchi offshore
exploratory gas field drilling project. In this exploratory drilling project, we are in charge of import/
export customs clearance and delivery operations for the drilling rigs and other equipment used, as
well as ship agency operations for material and equipment supply boats chartered from overseas.
Going forward, in addition to oil and natural gas development projects, we will continue to actively
participate in renewable energy-related projects such as offshore wind power generation, which is
attracting attention as a means to address climate change.

Real Estate BusinessAs a result of COVID-19, the office market is contracting and undergoing a shift toward
the consolidation of bases, and the number of customers at some commercial facilities isflagging. In view of this, the Mitsubishi Logistics Group’s Real Estate Business will work
to strengthen its earnings base, including by maintaining and improving profitability
through redevelopment and reinvestment in existing facilities and the replacement ofassets. In addition, we aim to become a business operator that demonstrates highdevelopment capabilities and facility management capabilities by accumulating expertisethrough the acquisition of new projects, such as public-private partnerships (PPP), andparticipation in joint projects with other companies.

Takashi Mukai
General Manager,
Real Estate Business Division

Operating revenue (Unit: ¥billion)

Segment overview

In addition to the acquisition of GRAND FRONTOSAKA, condominium sales increased.

41.199Fiscal 2021 operating revenue

43,662 million (¥up 20.8％ year on year)
2019

12

Mitsubishi Logistics Integrated Report 2022

43.66236.153

2020

2021

(FY)

International Transportation Business

Logistics Business,

The Mitsubishi Logistics Group’s International Transportation Business develops logistics
services that contribute to customers’ global supply chains, centered on international
integrated transport operations, such as ocean and air forwarding, and overseas logistics
operations. International logistics has been disrupted by factors such as the COVID-19
pandemic, but based on our motto of fulfilling our transportation responsibilities without
delaying our customers’ freight, we will provide services that meet the evolving needs ofour customers.
Operating revenue (Unit: ¥billion)

Segment overview

Munenori Kimura

73.593The volume of freight handled increased as a result of
the recovery from the COVID-19 pandemic and new
projects undertaken.

50.13846.514

Fiscal 2021 operating revenue

General Manager,
International Transportation
Business Division¥

73,593 million (up 58.2％ year on year)
2019

2020

2021

(FY)

Business strategy
Sales activities centeredon priority areas● Roll out sales activities mainly targeting groups of materials (new materials) whose applications are expanding due to technologicalinnovation● Offer services that optimize the entire supply chains by expanding the scope of operations undertaken and handling them consistently● Overseas, develop areas in line with the characteristics of each region, with a particular focus on the four main regions of ASEAN,

Overseas area strategy

Construction of a digitalplatform, and newtechnologies and new services

China, North America, and Europe (strengthening ASEAN in particular where economic growth is significant)see page 22) that strengthens collaboration among overseas bases, with a particularfocus on expanding the handling of freight within the ASEAN region and from ASEAN to Europe and the United States● In forwarding, work to develop a Global Grid (● Build a digital platform to create a better customer experience (CX) through cost reductions, new value creation and faster response● Provide consulting services that visualize the status of transportation and CO2 emissions, etc., and utilize supply chain analysis tools

Provide support to increase the resilience of customers’ global supply chains,and build a digital platform
The global COVID-19 pandemic has led to increased needs for automation in all aspects, transparency
and visualization of the status of transportation, and freight arrival forecasts, accelerating the growth ofdigitalized supply chains. In view of this, we have started building a digital platform that combines
digital technology with the logistics knowhow we have gained thus far.
Digital platform portal under development ▷Business strategy
Strengthen the earnings base of thereal estate rental business● Acquired joint equity in GRAND FRONT OSAKA (see Topics)

Expand real estate business that does notdepend on land ownership● Grand Opening of Suma Aqualife Park and Seaside Park Redevelopment Project (Kobe) scheduled for spring 2024● Review asset portfolio and sell non-core assets in Tokyo, Osaka and Fukuoka● Kumoi 5-chome District Category 1 Urban Redevelopment Project (Kobe) scheduled for completion in FY2027

Acquired joint equity in GRAND FRONT OSAKA, an office and commercial facility complex
Opened in April 2013, GRAND FRONT OSAKA is an office and commercial facility complex
with direct access to JR Osaka Station. The Company acquired joint equity in GRAND FRONTOSAKA on April 1, 2021 in order to expand its real estate rental business. The complex islocated in the advance development area (Umekita Phase 1) of JR Freight’s Umeda Freight
Depot Site Redevelopment Project, which is expected to become even busier with thedevelopment of the adjacent area (Umekita Phase 2). Together with our business partners, we
aim to operate facilities that are cherished and enjoyed by visitors.

Mitsubishi Logistics Integrated Report 2022

13

Initiatives for ESG Management and the SDGs

Overview of initiatives for ESG Management andthe SDGs
On April 30, 2021, the Group announced its Initiatives for ESG (Environment, Social, Governance)
Management and the SDGs (Sustainable Development Goals) proposed by the United Nations.
In order to disseminate these initiatives, we have established six key themes and compiled a list ofmeasures, performance indicators and target values for each theme based on our corporate
philosophy, the MLC2030 Vision, the basic policies of the Management Plan (2019-2021), and our
CSR activities to date.
The Group’s logistics and real estate business activities support the bedrock of society, and represent
exactly the kind of activities that contribute to the creation of a sustainable society, which represents
the spirit of the SDGs.
The Group aims to achieve sustainable growth by identifying opportunities for business growth while
endeavoring to resolve social issues through initiatives such as environmental measures, etc.
To ensure that we achieve the targets that have been set, we have established a Sustainability
Committee chaired by the Managing Executive Officer in charge of planning, and are promoting
quality initiatives through (1) progress management, (2) periodic inspection and replacement ofrelevant measures and KPIs, and (3) expanding communication with internal and external parties
through resources such as the Integrated Report and the Group’s official website.
From October 2022, the chairman of the Sustainability Committee will be changed to the President,
and all Managing Executive Officers will become committee members to strengthen the committee’sfunctions. We will also further promote initiatives to address sustainability issues by establishing the
Sustainability Promotion Division as a dedicated division.

Through responses to various emergencies
As COVID-19 continues to spread, the Group is continuing toprovide services such as safe and secure logistics and realestate services, which form part of our social infrastructure, while
implementing various measures.
The logistics business and the real estate business are notusually at the front of people’s minds. However, in the event ofan emergency, we are reminded that they constitute essential
work and are services that are indispensable to society.
Damage from the Great Hanshin Earthquake (Harborland Dia Nissei Building in Kobe)
The Great Hanshin Earthquake that occurred on January 17,
1995, and the Great East Japan Earthquake that occurred on
March 11, 2011 were the largest emergencies to occur in recent
years, and several of the Group’s facilities were severely damaged.
The Group has worked collaboratively to overcome these emergencies by working on
recovery measures and responding to customer requests.
Our response to these kinds of disasters has led to our facility concepts of DisasterResistant and Eco-Friendly Warehouses and Disaster-Resistant and Eco-Friendly Office
Buildings, which lay the foundation for our businesses.
Damage from the Great East Japan
Earthquake (Sendai Distribution Center)

Resolving environmental issues with partnerships
The Group has been promoting the installation of solar power equipment and LED lighting under the concepts of DisasterResistant and Eco-Friendly Warehouses and Disaster-Resistant and Eco-Friendly Office Buildings, but there are still manypressing issues left to achieve CO2 reduction and carbon neutrality.
While the Group can accommodate environmental initiatives for hardware in logistics and real estate facilities on its
own, partnerships with customers, industry peers, partners, and other parties are important for addressing
comprehensive supply chain issues.
We believe that we can further improve and optimize our logistics operations by, for example, (1) working with ourcustomers to predict demand and supply, and establish optimum production and logistics systems, (2) working withindustry peers and partners to utilize AI for efficient car allocation, improve loading efficiency and promote Container
Round Use, and (3) working on systemization that will enable us to accomplish these initiatives.
We will not only optimize logistics, but also contribute to resolving environmental issues by sharing more in-depth
information with all related parties, including our customers, and creating services that are valuable to both customers and
Mitsubishi Logistics Corporation.

14

Mitsubishi Logistics Integrated Report 2022

The Three Principles of Mitsubishi’s Business Management Philosophy (“Sankoryo”) and ESG
We believe that the three principles of the Mitsubishi Sankoryo of “Shoki Hoko” (fulfilling responsibility to society), “Shoji
Komei” (devotion to fairness), and “Ritsugyo Boeki” (maintaining a global perspective) connect directly to the modern
concept of ESG.
The spirit of these three principles, passed down throughout the history of the Mitsubishi Group, will continue to be sharedby the executives and employees of the Mitsubishi Group as we move forward into a new future.

The Three Principles of Mitsubishi’s Business Management Philosophy
The Mitsubishi Sankoryo is a managerial creed articulated by the fourth president of the Mitsubishi organization,
Koyata Iwasaki. The Sankoryo serves as a basic philosophy of an internally and externally open group being sharedby the constituent Mitsubishi Group companies that are independent from each other.

“Shoki Hoko”“Shoji Komei”“Ritsugyo Boeki”

Corporate Responsibility
to Society

Integrity and Fairness

Global Understanding
through Business

Strive to enrich society, bothmaterially and spiritually, while
contributing toward the preservationof the global environment.

Maintain principles of transparency
and openness, conducting businesswith integrity and fairness.

Expand business, based on an
all-encompassing global perspective.

Code of Conduct
We have established the following Code of Conduct to realize our corporate philosophy (on the spirit of the Three Principles of Mitsubishi’s Business Management Philosophy.

see back cover) based

We engage in business activities to secure appropriate profits and promote steady growth,
appropriately compensating our employees and stockholders while contributing to
the realization of an affluent and sustainable society.
1.	We shall comply with laws, ordinances and rules that enable us to honestly and fairly carry out businessactivities without deviating from social norms.
2.	We shall appropriately disclose corporate information in a timely manner to enhance broad communications
with society.
3.	We shall continue to have no contact or relations with any antisocial forces that might pose a threat to the
public order and safety of civil society.
4.	We recognize the importance of environmental issues and shall actively cooperate with diverse activities forenvironmental preservation.
5.	We shall provide people with safe, high-quality and socially valuable services, and endeavor to conduct social
contribution projects as a “good corporate citizen” while taking into account coordination with local
communities and international society.
(Established on December 16, 1997, and revised on August 29, 2005) Each subsidiary shall establish its own Code of Conduct in compliance with this Code of Conduct.

Mitsubishi Logistics Integrated Report 2022

15

Initiatives for ESG Management and the SDGs

Value-creation Story
External environment
Reduce energy costs

Prevent global warming (reduce CO2, carbon neutrality)

Improve operational efficiency and promote DX through AI

Infrastructure damage due to natural disasters

Onset of an aging society

Corrections to long working hours

Increase in cyber crimes and accidents

Key issues/Six key themes
Safety, security, disaster response
Provide disaster-resistant, safe and secure
infrastructure in Japan and abroad

Compliance, human rights, gender
Ensure thorough compliance together withpartners, and establish a diverse organization

Human resource development, employee satisfaction
Establish environments and systems thatallow employees and their families to leadhealthy, fulfilling lives

Environmental initiatives
Work with customers and partners to
reduce environmental impact andprevent global warming

Cutting-edge technology, innovation
Promote DX (Digital Transformation) and resolve
social issues

Partnerships
Create new businesses by proactively collaboratingwith partners in Japan and overseas

Management resources
Financial capital
Total assets

562.2 billion¥

Free cash flow*

7.0 billion¥

Human capital

Strategic investment

Business investment

Other investment

Number of
employees

DX, IT-related
investment, etc.

Logistics Real estate

CVC fundmanagement

4,732

As of March 31, 2022¥

50.0 billion

As of March 31, 2022 2022-2024 cumulative total¥

40.0 ¥40.0
billionbillion2022-2024 cumulative total

5.0 billion¥

By FY2024* Operating CF-Investment CF

Business domains

Customers

Logistics
Business
Safety, security,
Environmental
disasterinitiatives
response

Basic managerial creed
The MLC2030 Vision

Compliance, Executives/ Cutting-edge
human rights, employees technology,
genderof the Group innovation
Human resource
development,
employee satisfaction

Management Plan
(2022-2024)

Partnerships

Shareholders/
Investors

Real EstateBusiness

The Three Principles ofMitsubishi’s Business
Management Philosophy(“Sankoryo”)

Partners(including subcontractors)

Corporate philosophy

We aim to create corporate value and achieve growth by contributing to
the realization of an affluent and sustainable society by enhancing customer
value, reducing environmental impact, and preventing global warming.
16

Mitsubishi Logistics Integrated Report 2022

Six Key Themes (materiality selection process)In order to make progress toward realizing ESG Management and the SDGs, we established a project
team in September 2020, conducted questionnaires for each executive and employee (including thoseof Group companies), and examined key themes with outside experts. As a result, we established six
key themes and compiled a list of measures, performance indicators, and target values for each.

STEP 1

Extract and organize key issues

In September 2020, we established a project team in view of the need to work on initiatives for ESG management
and the SDGs in our aim to achieve the growth set out in the MLC2030 Vision.
The general managers of each business division also participated in the project team, which held discussions
based on the relationship between each business and the business strategy. The team also reconfirmed theCompany’s corporate philosophy and various policies, worked to organize the relationship between the Group’s
initiatives thus far and ESG and the SDGs, and extracted and organized key issues.

STEP 2

Conduct internal questionnaires

In parallel with STEP 1, we conducted a questionnaire survey for approximately 3,000 executives and employees,
including those of Group companies, to investigate their approach to, and awareness of, ESG, SDGs, and compliance.
The data collected were analyzed by age group and type of work engaged in, etc., and after confirming trends, weused the results to select key issues.

STEP 3

Select key issues

Based on the information and data obtained in STEP 1 and STEP 2, the project team held further discussions on
the key issues by both identifying and deriving them from the businesses in which the Company engages, and by
deriving them from the social issues that the Company already addresses in its SDGs, etc.
After several months of discussions with external experts, we decided on six key themes.

The key themes of the Group, which were formulated based on the corporate
philosophy, the MLC2030 Vision, and expectations from society, etc., are as follows.
Six key themes to be tackled by the Group
Safety,security,
disaster
response

Environmental
initiatives

Cutting-edge
technology,
innovation

Partnerships

Human
resource
development,
employeesatisfaction

Compliance,
human rights,
genderMitsubishi Logistics Integrated Report 2022

17

Initiatives for ESG Management and the SDGs

Measures to be Taken, Performance Indicators,
and Target Values
Measures to be taken through business activities, performance indicators for each measure, andtarget values are as follows.
Six key themes

Priority measures and measures through business activities

Provide infrastructure services that are sustainable even during
disasters

Performance indicators❶ Earthquake resistance standards
for facilities*● Develop facilities with strong earthquake and wind pressure resistance that

surpasses the requirements of various laws and regulations
Safety, security,
disaster response● Secure fuel for business continuity at distribution centers and in transportation

operations during large-scale disasters

Develop high-quality logistics services that utilize temperature controls
and security capabilities in Japan and overseas● Further utilize DP-Cool vehicles for temperature-controlled transportation ofpharmaceuticals

Further develop disaster-resistant eco-friendly warehouses andeco-friendly office buildings that serve to reduce GHG/CO2 emissions● Consider the environment through electricity supply by solar power generation,

Environmental
initiatives

Reduce GHG/CO2 emissions by enforcing efficient transportation
methods, etc.
using a truck reservation system, mount cargo handling equipment with fuel cells
towards a CNP*1

Partnerships❸ U tilization rate of DP-Cool vehicles*
for temperature-controlled
transportation of pharmaceuticals❶ CO2 emissions reduction rate*

reduce power consumption through LED lighting in warehouses● Realize efficient delivery by improving loading rates, etc., shorten waiting time

Cutting-edge
technology,
innovation❷ Percentage of required fuelsecured*1 in target regions*2❷ CO2 emissions reduction rate fortransportation*

Enhance and automate logistics/real estate services and save labor● Logistics: Optimize warehouse operations and car allocation planning using AI,

etc., respond to EC logistics, etc., automate equipment in warehouse facilities
and make it labor-saving● Real estate: Enhance and save labor of facility management operations using IT

DX, IT-related* investment

Collaborate with startups and companies in other industries● Optimize development and create new businesses through open innovation with

CVC* fund management

CVC, etc.

Human resource
development,
employeesatisfaction

Develop personnel and welfare programs that value each individual
employee● Establish a personnel system that accommodates a variety of workstyles● Create an environment that helps balance work and life

Develop human resources with global perspectives● Develop human resources with global perspectives through expansion of training

programs, etc.

Compliance,
human rights,
gender*1

18❶ Ratio of regional generalemployees*❷ Ratio of employees taking childcare leave*❸ R atio of employees with experiencein overseas assignments*

Promote sincere and fair business activities
Ensure thorough compliance, with awareness of comprehensive supply chains● Implement initiatives for adherence to relevant laws and regulations and respect

Response rate for Code of Conduct
questionnaire and CSR questionnaire*for human rights together with subcontractors

CNP: An abbreviation for “Carbon Neutral Port”
Refers to contributions to realize carbon neutrality at ports and harbors which serve as focal locations/industrial bases for international logistics through the sophisticationof port and harbor functions with considerations for decarbonization.

Mitsubishi Logistics Integrated Report 2022

Going forward, to ensure that we achieve the targets that have been set to be achieved by fiscal 2030, we
will establish a Sustainability Committee and promote initiatives through progress management, periodic
inspection and replacement of relevant measures and KPIs, and expanding communication with internaland external parties through resources such as the Integrated Report and the Group’s official website.
Description of performance indicators

Target values for FY2030* Targeting logistics and real estate facilities owned by the Company that will be completed and begin operationfrom April 1, 2021 onward❶ Maintain 110% of earthquake
resistance standards*1: Targeting Nankai Trough Earthquake Disaster Countermeasure Promotion Area as designated by the Cabinet Office*2: P ercentage of required fuel secured for use during large-scale emergencies for logistics facilities owned andoperated by the Company with an area of approximately 16,550 m2 or more through maintaining reserve
kerosene stored in-tank, contracts with oil distribution companies for priority fuel supply during disasters, etc.

❷ 100% of requirement secured* Vehicles compatible with the DP-Cool temperature-controlled pharmaceuticals delivery service provided by theGroup company Dia Pharmaceutical Network Co., Ltd.

❸ 1 00% temperature-controlled
transportation with DP-Cool vehicles* Targeting the Company, Fuji Logistics Co., Ltd., and Ryoso Transportation Co., Ltd.

❶ CO2 emissions
Previous: down 30%
New: down 50%*2(versus FY2013, Scope 1+2)

* Targeting transportation with the DP-Cool temperature-controlled pharmaceuticals delivery service provided by
the Group company Dia Pharmaceutical Network Co., Ltd.

❷ CO2 emissions
Previous: down 20%
New: down 50%*2(versus FY2018)* Investment in reformation of services and business models based on the needs of customers and society using
data and digital technology, and reformation of operations, organizations, processes, and corporate culture/climateCumulative investment of
50.0 billion yen for FY2021-FY2030* An abbreviation for “Corporate Venture Capital,” a business practice in which companies form funds with theirown corporate capital to invest in and support unlisted startups that may be related to their business or beadvantageous for their core business in the future

Establish a CVC of 5.0 billion yen* General employment for limited workplace regions introduced in April 2021 for realizing diverse and flexible
workstyles❶ 30%* System that allows male and female workers who are raising a child under the age of 2 to apply to takeleave for child-care until the child reaches the age of 2

❷ 60%

* General employees with experience in overseas assignments (including training programs)❸ 25%* Questionnaire on CSR targeting subcontractors, etc., with close business relationships

Over 90% every year

*2

Target values were raised in September 2022. For details, please refer to Environmental Initiatives (page 26).

Mitsubishi Logistics Integrated Report 2022

19

The MLC2030 Vision and the Management Plan

The MLC2030 Vision and the Management Plan
Outline of the MLC2030 Vision and the Management Plan
The MLC2030 Vision (announced on March 22, 2019)

Contributing to the improvement of customer’s value, we offer
comprehensive logistics solutions to the management of customer’s supply chains,from procurement to distribution/sales, as their partner.

VisionWe have established the MLC2030 Vision as the ideal image of the Mitsubishi Logistics Group in 2030 (Top Message). Our growth strategies aimed at achieving this vision are as follows.
1. Establish a customer-oriented support system
The Group will establish a customer-oriented support system with afocus on the medical/health care, food/beverage, and machinery/electrical machine industries as priority areas*, and will take oncomprehensive supply chain challenges as the customer’s partner.
Through these efforts, the Group will seek to expand its businessdomain and boost its market share.
* We have added new materials, the market for which is expected to
expand towards the year 2030, to the Management Plan (2022-2024) tocreate four priority areas.

2. Expand overseas business
The Group will move forward with system enhancements to support
customer supply chains in the medical/health care and food/beverage industries and strengthen its forwarding business withdemand for high-quality cold chains* expected to grow in a numberof regions such as Southeast Asia (ASEAN).
* Services providing uninterrupted temperature-controlled transport anddistribution for refrigerated goods.

see page 4:

3.	Secure stable profits in the Port and Harbor
Transportation and the Real Estate Businesses
The Group will further enhance the competitiveness of the Port andHarbor Transportation Business by leveraging its cargo handlingservices, which ranks the highest globally for efficiency, while at thesame time developing commercial complexes and facilities andboosting its operational capability in the Real Estate Business. By
doing so, the Group will seek to secure stable profits.

4.	Improve operational processes and further
utilization of new technologies
The Group will review the operational processes of all businesses
and facilitate efficient operations by utilizing new technologies suchas IoT, AI and robotics. Through these efforts, it aims to improve
service quality and production efficiency.

5. Strengthen the Group management base
The Group aims for growth by strengthening cost competitivenessthrough organizational management across the Company and its
Group companies and securing and developing human resources,
particularly in the priority areas.

Stage 2

Management Plan (2022-2024)
Strengthen the profitability of the
Logistics Business● Expand the foundations for thegrowth of overseas business● Expand the Real Estate Business bystrengthening development capabilities● Develop high value-added services
by utilizing cutting-edge technology● Strengthen the Group management baseSee page 22

●

Basic
policies●

Numerical
targets

Operating income

20.0 billion (FY2024)
7％ (FY2024)
continuously 2％ or more
¥

●

ROE

●

DOE

●

Operating income

Stage 1
Management Plan (2019-2021)：Achieved numerical targets
Evaluation

20：Steadily implemented key measures：Capital efficiency needs further
improvement

Mitsubishi Logistics Integrated Report 2022

Numerical
targets¥●

DOE

14.5 billion (FY2021)
2.0％ (FY2021)

Review of the Management Plan (2019-2021)
Status of achievement (quantitative)■ Although sales and profits decreased in fiscal 2020 due to

COVID-19 (reduced volume of freight handled, partial
closures of commercial facilities, etc.), sales and profits bothincreased in fiscal 2021 as a result of a recovery in the volumeof freight handled and increased ocean and air freight rates.

■ Although the Real Estate Business failed to meet its profit

target, greater business performance of the Logistics
Business contributed to the overall achievement of revenue
and profit targets and the DOE (dividend on equity) target in
the Management Plan (2019-2021).

Differences between financial results and targets in the Management Plan (2019-2021)

(Unit: ¥million)

FY2019(actual results)

FY2020(actual results)

FY2021(actual results)

FY2021 (targets)

Operating revenue

229,057

213,729

257,230

240,000+ 17,230

Logistics Business

189,709179,255

215,240

198,700+ 16,540

Real Estate Business

41,19936,153

43,66243,600+ 62

Inter-segment transactions(1,851)(1,679)(1,672)(2,300)+ 628

12,195

11,735

18,144

14,500+ 3,644

Operating income

Difference
Evaluation(actual result - target)

Logistics Business

7,184

7,232

13,703

9,200+ 4,503

Real Estate Business

10,85910,038

10,316

10,700(384)(5,847)(5,535)(5,875)(5,400)(475)

Ordinary income

Corporate expenses

16,822

16,01323,151

17,100+ 6,051

EBITDA (Operating income + Depreciation)

26,447

26,59533,61030,100+ 3,510

Profit (attributable to owners of parent)

11,851

39,16017,892

ー

ー

ー

ROE
Amounts per share of cash dividends
applicable to the year/Annual dividend
per share(yen per share)

4.1％

12.9％

5.4％

ー

ー

ー

60

60

80

ー

ー

ー

DOE

1.8%

1.7%

2.0%

2.0%

± 0％

Status of achievement (qualitative)■ We steadily implemented the key measures set out in the management

plan, including by developing the business foundations of the priority
areas, opening a distribution center (Misato City, Saitama Prefecture) for
e-commerce utilizing new technologies, and bolstering production
efficiency through more efficient operational processes and other means.

■ In the Real Estate Business, we promoted theacquisition of profitable properties, such as theacquisition of joint equity in GRAND FRONT OSAKA. We
must strengthen our management system to further
expand our business.

Key measures, main initiatives, and tasks of the Management Plan (2019-2021)
Key measures

Main initiatives

Tasks

Evaluation● Completed Seishin Distribution Center Phase 2 Building, Minamihonmoku

Strengthening the business foundationsof the priority areas

Establishing a system that leverages
new technologies
Maintaining competitiveness in the port
and harbor transportation business
Improving the organizational structure tostrengthen capabilities for the development
and operation of commercial complexes andother facilities of the Real Estate Business
Bolstering production efficiency throughmore efficient operational processes
and other means
Improving operational conditions toreform workstyles and create innovation
Increasing shareholder returns

Distribution Center, Misato Distribution Center No. 2 Phase 2 Building,and Ibaraki Distribution Center No. 4● Formed business alliances with K.R.S. Corporation, Cryoport, Inc. and others● Rolled out DP-Cool services nationwide● Expanded storage and delivery operations for automotive parts● Promotion of sales and● Opened “SharE Center misato,” a distribution center for e-commerce● Development of profitable● Strengthened collaboration with start-up companies through VC investment● Introduced a proprietary terminal operation system● Acquired joint equity in GRAND FRONT OSAKA● Reinforced rental facilities around Nagoya Station● Bolstered profitability in the Logistics Business through more efficient

operational processes and other means● Conducted verification tests for improved operational efficiency at warehouses using AI● Revised the personnel system and promoted diverse workstyles● Increase dividend to ¥80 per share and implement buyback of ¥20.0 billion

treasury shares, exceeding the plan (targeting ¥15.0 billion)

investment in each priority area
● Strengthening of overseas

business foundations

businesses● Rebound from the COVID-19 impact● Response to reduced freight volume● Improvement of the organizational

structure to strengthen operational
capabilities● Further improvements to

productivity● Utilization of human resources,

including at Group companies● Improve capital efficiency● Announce “Initiatives by the Mitsubishi Logistics Group for ESG

Promoting CSR-oriented management

Management and the SDGs”● Strengthen initiatives● Issue the Integrated Report in place of the Environmental and Social Report

Mitsubishi Logistics Integrated Report 2022

21

The MLC2030 Vision and the Management Plan

Management Plan (2022-2024)
Basic policies and numerical targets
Basic
policies

1. Strengthen the profitability of the Logistics Business
2. Expand the foundations for the growth of theOverseas Business
3. Expand the Real Estate Business by strengthening
development capabilities
4. Develop high value-added services by utilizing
cutting-edge technology
5. Strengthen the Group management base

Numerical
targets●

Operating income¥20.0 billion (FY2024)

●

ROE

7％ (FY2024)

●

DOE

continuously 2% or above

Basic policies
1. Strengthen the profitability of the Logistics Business■ Expand business in the three priority areas of medical/health care, food/beverage,

and machinery/electrical machines in order to realize the MLC2030 Vision■ Add new materials, the market for which is expected to expand towards the year 2030, to the priority areas■ Strengthen the earnings power of the Logistics Business by increasing profits through the acquisition of new businesses and thecultivation of existing businesses, and by improving profit margins through improved operational efficiency and the collection of
appropriate fees.

2. Expand the foundations for the growth of overseas business●

Global Grid Strategy
Contribute to the optimization of customer supply chain management
by promoting the establishment of a system that responds to trends
and changes in global supply chains
Strategic
targets

Overseas sales ratio …… 11.2％

FY2020 actual results

Strengthen and upgrade intra-regional

logistics and forwarding, and create synergies
Establish a business operation base thatmainly consists of local staff●
Accelerate growth through a partnershipstrategy with leading logistics companies●

20％ or above FY2024 target

3. Expand the Real Estate Business by strengthening development capabilities■ Continue to strengthen the earnings base of the real estate rental business and expand the real estatebusiness that does not depend on land ownership.

■ Aim to create new revenue sources, and consider initiatives for asset turnover business utilizing REITs, etc.

4.	Develop high value-added services by utilizing cutting-edge technology
Company-wide policy
Increase efficiency and sophistication of logistics
operations and facility management

Aim to resolve social issues and realize business growth in boththe Logistics and Real Estate Businesses by proactively
introducing cutting-edge technology

Develop logistics platform services

5. Strengthen the Group management base■ Establish a management base that is resistant to changes and risks through thorough risk

management and human resource development.

■ Improve operational efficiency by reviewing the operations for which we are responsible,

including at Group companies, and optimizing the organization.

Improve efficiency
Improve efficiency by reviewing and eliminating operations
Improve efficiency by integrating operations● Develop an environment that utilizes digital technology● Conduct a review of responsible operations withGroup companies● Optimize the organization●●

Human resources

Reform the corporate culture●Improve employee satisfaction
Ensure diversity of human resources● Develop global human resources● Address workstyle reforms● Develop digital human resources

●

●

●

●

E nhance PR activities
Enhance IR activities

Strengthen Groupmanagement baseDetails of basic policies of the Management Plan (2022-2024)
HOME ▶ IR information ▶ Management policy ▶ Management Plan

22

Mitsubishi Logistics Integrated Report 2022

Risk management
S trengthen response to disasters and infectious
diseases● Strengthen response to industrial safety andhealth● Strengthen response to cybersecurity● D evelop IT infrastructure for business continuity● A ppropriate facility maintenance and management● Strengthen internal auditing●

PR and IR●R eview delegation of authority and internal practices
Foster a corporate culture that supports newchallenges and innovation

Capital policy
Capital allocation■ We will sell more investment securities than in fiscal 2019-2021. In terms of investment, while considering the soundness of our

financial position, we will utilize external borrowings, etc. to expand profits and improve capital efficiency.

■ We will make investments to achieve the MLC2030 Vision and address ESG management and the SDGs, and will also promote

the return of profits to shareholders.

FY2022-2024 plan Cumulative cash flow

Cumulative cash flow FY2019-2021
IN

OUT
Sale of shares,
etc.

Sale of shares, etc.
External
borrowings, etc.

Operating CF
and others¥20.0 billion¥15.0 billion

Logistics¥40.0 billion
Real estate¥65.0 billion

External
borrowings, etc.

OUT

¥40.0 billion

Logistics¥40.0 billion¥40.0 billion

Real estate¥40.0 billion

Investments
Operating CF
and others¥106.0 billion*¥36.0 billion

IN

Business
investment¥50.0 billion

Strategic
investment¥50.0 billion

Shareholder
returns¥100.0 billion

Shareholder
returns* “Operating CF and others” for FY2019-2021 includes approximately ¥36.6 billion in compensation income, etc. received from the sale of land in front of Nagoya Station.

Investment plan
Business
investment
Strategic
investment

FY2022-2024 plan Cumulative cash flow

¥40.0 billion¥40.0 billion■ Logistics

Maintain and strengthen the competitiveness of existing
businesses (acquisition and renewal of facilities and real estate, etc.)■ Real estate

Expand business portfolio and create new business domains¥50.0 billion(DX, IT-related investment, new business development, M&A,
environmental initiatives, etc.)

Enhance shareholder returns and improve capital efficiency■ We position the return of profits to shareholders as one of the most important management issues, and will strive to further

enhance shareholder returns.

■ While taking into account the balance among corporate performance, growth investments, and capital efficiency, we will achieve

stable and continuous dividends with a DOE of 2% or above, and flexibly acquire treasury shares on a scale that exceeds theexecution amount during the period of the Management Plan (2019-2021) (with a target of ¥30.0 billion or more).
■ We will accelerate the reduction of cross-shareholdings after continuously verifying the rationality of such holdings, and use theproceeds from their sale for strategic investment and shareholder returns.
Amount of acquisition of treasury shares

Amount of sales of investment securities(Unit: ¥billion)

Actual results for FY2019-2021(3-year cumulative total)

Plan for FY2022-2024(same as on left)¥20.0 billion¥30.0 billion or above

10.0* The maximum total number of treasury shares held is set at around 5% of
the total number of shares issued, and any shares exceeding this shall, in
principle, be canceled.

5.0

15.0

6.0

6.8

7.6

2019

2020

2021

1.3
0

2018

Management Plan
(2022-2024)

Initiatives for ESG Management and the SDGs
Main initiatives during the Management Plan onsider methods to secure fuel for businessCcontinuity in transportation services● 
Increase the number of customers using DPCool services●

Safety, security,
disaster response educe CO2 emissions by introducing energyRsaving equipment, etc.
● 
Improve transportation efficiency by collecting
return shipments, etc.
● 
Visualize Scope 3 CO2 emissions●

Environmental
initiatives

Cutting-edge
technology,
innovationIncrease efficiency and sophistication of logistics
operations and facility management● 
Develop logistics platform services●

Partnerships
Human resource
development,
improving
employeesatisfaction
Compliance,
human rights,
gender●Establish a CVC

 isseminate information about the personnelDsystem at times of recruitment and jobchange recruitment● 
Implement measures encouraging
employees to take child-care leave (in termsof systems and training)● 
Broaden the overseas dispatch program●● xpand CSR questionnaires to include
E
subcontractors
Mitsubishi Logistics Integrated Report 2022

23

Initiatives for Each of the Six Key Themes

Safety, Security, Disaster Response
Our vision for the Group starts with safety and security. We will remain
prepared from both the perspectives of hardware in logistics facilities, etc.,
and software in information systems, etc. to protect the safety of importantcargos entrusted to us by our customers and provide a reliable sense of
security. From the viewpoint of our customers, one could say that our facilities
can be used to help prepare for emergencies (disasters, etc.), which we
recognize with certainly as being one of our customers’ crisis management issues.
The Group will always strive to meet the expectations of these customers.

4F access to Seishin Distribution Center
Phase 1 Building in Kobe

Performance indicators and targets

Achievements in FY2021❶ Earthquake resistance standards for●facilities

At the Ibaraki Distribution Center No. 5 in Osaka(scheduled for completion in October 2022), we have
employed a seismic-isolated structure, and plan toensure structural strength against wind pressure of 115%
or greater, as stipulated in the Building Standards Act.
Fuji Logistics Co., Ltd.’s Tsukuba Logistics Center in
Ibaraki (completed in April 2022), as like the Company,
also has a seismic resistance standard (required
horizontal strength*) of 110% or higher and windpressure resistance of 115% or higher, as stipulated by
the Building Standards Act.

Targeting logistics and real estate facilities owned by theCompany that will be completed and begin operationfrom April 1, 2021 onward
Target values for FY2030

Maintain 110% of earthquake resistance standards* The strength required for a building against the horizontal force experienced
during an earthquake❷ Percentage of required fuel secured●
in target regions
Targeting Nankai Trough Earthquake Disaster
Countermeasure Promotion Area as designated by the
Cabinet Office Percentage of required fuel secured foruse during large-scale emergencies for logistics facilities
owned and operated by the Company with an area ofapproximately 16,550 m2 or more through maintaining
reserve kerosene stored in-tanks, and contracts with oil
distribution companies for priority fuel supply during
disasters, etc.

The Company’s Osaka Branch has entered into priority
fuel supply contracts for the Sakurajima and Ibaraki
regions, while the Ibaraki Distribution Center No. 4
completed in 2018 is equipped with a kerosene in-tank(self-refueling facility) on the premises, thereby
establishing a business continuity system in the event ofa large-scale disaster.
As of March 31, 2022, the achievement status of theperformance indicators (percentage of required fuelsecured (area of completed facilities, area of all
applicable facilities)) was 27% (no change from theprevious fiscal year).

Target values for FY2030

100% of requirement secured❸ Utilization rate of DP-Cool vehicles●
for temperature-controlled
transportation of pharmaceuticals
Vehicles compatible with the DP-Cool temperaturecontrolled pharmaceuticals delivery service provided by
the Group company Dia Pharmaceutical Network Co., Ltd.
Target values for FY2030

100% temperature-controlled transportation
with DP-Cool vehicles

24

Mitsubishi Logistics Integrated Report 2022

The launch of DP-Cool services for Okinawa in January
2021 has enabled us to expand the service nationwide.
Due to the expansion of the service area and theyear-round pharmaceutical distribution center
operations at Misato Distribution Center No. 2 in
Saitama, which was completed in October 2020, theperformance indicator in fiscal 2021 was 30% (up 2percentage points year on year).

Priority measures and measures through business activities◆ Provide infrastructure services that are sustainable even during disasters →Performance indicators ❶❷・ In addition to preparing for earthquake disasters, we are rolling out “disaster-resistant” facilities with strong
earthquake and wind pressure resistance that surpasses the requirements of various laws and regulations in order toprepare for the intensification of weather disasters caused by climate change.
・ In the event of a large-scale disaster, despite the need for the delivery of daily necessities and support/relief goods
from the Company’s distribution centers to afflicted areas, it is expected that securing fuel such as kerosene will bedifficult. In order to maintain delivery operations under such circumstances, we will continue to stockpile fuel on ourfacility premises and enter into priority fuel supply contracts with oil distributors.
◆ Develop high-quality logistics services that utilize temperature controls and security capabilities in Japanand overseas →Performance indicator ❸・ Pharmaceuticals are products that are closely related to health and life, and require a high level of logistics’ quality inthe distribution process. The Mitsubishi Logistics Group provides DP-Cool, a high-quality pharmaceuticals delivery
service, and is striving to supply safe and secure pharmaceuticals by expanding this service’s use.

Initiatives and plans for FY2022 and beyond
For newly planned buildings, we will appropriately
manage progress from the construction planning(concept) and planning stages in order to maintain 110%or more of the earthquake resistance standards
stipulated by the Building Standards Act.

We also plan to install a kerosene stored in-tank at the
Ibaraki Distribution Center No. 5 in Osaka, which isscheduled to be completed in October 2022, and willcontribute to the stable supply of pharmaceuticals in theevent of a large-scale disaster.
In other regions, we will also select partner companies,
such as fuel supply companies, aimed at enhancing ourbusiness continuity system.

V O I C E
About Tsukuba Logistics
Center, Fuji Logistics Co., Ltd.
Nobuaki Ishida
The head of Tsukuba Logistics Center
Higashikanto Branch, Fuji Logistics Co., Ltd.
Fuji Logistics Co., Ltd.’s Tsukuba Logistics Center is a facility
equipped with overhead cranes that began operations in
April 2022 and handles heavy cargo such as switchboards.
Here at Fuji Logistics Co., Ltd., we promote regular patrol
activities and the thorough implementation of standard work
as a safety initiative in our daily operations. The Mitsubishi
Logistics Group announced its six key themes in 2021, oneof which is “safety, security, disaster response.”
In line with this theme, the Tsukuba Logistics Center has
secured an earthquake resistance standard equivalent to110% so that customers can continue their business even in
the event of a disaster, and has strengthened its wind
resistance performance as part of its response to climatechange.
While we of course work to provide optimal logistics
services, we are also considering the introduction of cuttingedge technology, such as drones for facility inspections,aiming to create disaster-resistant facilities that customers
can use with confidence.
(Group company of the Company)

ML Chain, which has been in operation since January2022, is a pharmaceuticals data platform that enables
traceability and real-time visualization of varioustransportation information using blockchain technology.
By expanding the base of this platform, we will
promote information sharing on the supply chain andcontribute to the establishment of a safer and moresecure pharmaceuticals distribution network.
Tsukuba Logistics Center
Higashikanto Branch, Fuji Logistics Co., Ltd.

Mitsubishi Logistics Integrated Report 2022

25

Initiatives for Each of the Six Key Themes

Environmental Initiatives
In order to address comprehensive supply chain issues, we will
cooperate with our customers, industry peers, and partners to reduce
the number of transportation vehicles and promote modal shifts. In termsof information systems, we will fully address environmental issues suchas the reduction of CO2 emissions by working on the establishment andintroduction of a logistics platform. For facilities and equipment as well,
we will further develop Disaster-Resistant and Eco-Friendly Warehouses
and Disaster-Resistant and Eco-Friendly Office Buildings.

Solar power generation system installation at
the Minamihonmoku Distribution Center in Yokohama

Performance indicators and targets

Achievements in FY2021❶ Reduction rate of CO2 emissions at●
facilities

No new eco-friendly warehouses or eco-friendly officebuildings were constructed; however, at facilities
currently in operation, we are systematically updating
old air conditioners that use HCFC (R22) refrigerants,
etc., which have a high environmental impact, andproactively introducing equipment with high energysaving performance, such as by upgrading existing
lighting equipment to LED lighting.

Targeting logistics and real estate facilities owned by theCompany and its Group company, Fuji Logistics Co., Ltd.
Target values for FY2030

CO2 emissions in Scope 1 and 2 of
the GHG Protocol
Previous: down 30%
New: down 50% (versus FY2013)(Expand scope and add transportation by Ryoso Transportation Co., Ltd.)

Main examples of updates:● 
Warehouse facilities...upgraded air conditioners at
Niiza Distribution Center in Tokyo, upgraded existing
lighting equipment to LED lighting at Ohi Refrigerated
Warehouse in Tokyo, upgraded existing lighting
equipment to LEDs at Yashio Distribution Center No.
1 in Tokyo, and upgraded air conditioners at Ibaraki
Warehouse No. 12 in Osaka● 
Real estate facilities... upgraded existing lighting
equipment to LEDs at Yokohama Dia Building,
upgraded air conditioners and upgraded existing
lighting equipment to LED lighting at the Harborland
Dia Nissei Building (office tower) in Kobe
As a result of these initiatives, the reduction rate of
CO2 emissions at facilities in FY2021 (previous scope)declined 28.1% versus FY2013 (up 0.7 percentage
point year on year).

❷ GHG/CO2 reductions through efficient●transportation/delivery
Vehicles compatible with the DP-Cool temperaturecontrolled pharmaceuticals delivery service provided by
the Group company Dia Pharmaceutical Network Co., Ltd.
Target values for FY2030

CO2 emissions

Previous: down 20%

New: down 50% (versus FY2018)(No change in scope)

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Mitsubishi Logistics Integrated Report 2022

We worked to improve the loading rates, etc. of the DPCool temperature-controlled pharmaceuticals delivery
service, and reduced CO2 emissions per productweight and transportation distance for products that aretransported and delivered using this service. As a result,
we achieved our target, reducing CO2 emissions in
FY2021 by 44% compared with FY2018 (down 14
percentage points year on year).
Ryoso Transportation Co., Ltd. introduced “e-Canter,”an EV truck, in December 2021.

Priority measures and measures through business activities◆ Further develop disaster-resistant and eco-friendly warehouses and eco-friendly office buildings thatserve to reduce GHG/CO2 emissions →Performance indicator ❶At our distribution centers, which are positioned at the core of our supply chain, we are working to reduce theenvironmental impact by promoting the visualization of environmental burden-related figures such as CO2 and waste
emissions, the introduction of green power such as solar power generation, and the conversion of lighting equipment
to LED lighting.
◆ Reduce GHG/CO2 emissions by enforcing efficient transportation methods, etc.

→Performance indicator ❷In order to reduce CO2 emissions from the Group’s transportation/delivery operations, we will establish a method formeasuring emissions, shorten truck waiting time using a truck reservation system, optimize transportation methods
through modal shifts, and consider the introduction of next-generation vehicles, including EV trucks. We will also workon the introduction of cargo handling equipment mounted with fuel cells towards realizing a CNP (carbon neutral port).

Initiatives and plans for FY2022 and beyond
Ibaraki Distribution Center No. 5 in Osaka, which iscurrently under construction, is scheduled to becompleted in October 2022 as a disaster-resistant andeco-friendly warehouse with high-efficiency air
conditioners and LED lighting.
In addition, in order to efficiently promote the reductionof the environmental burden in the operation of logistics
facilities, we are moving forward with initiatives to visualize
various environmental burden figures, such as CO2
emissions, for the domestic logistics facilities of the Group.
Raising target values
Efforts to reduce emissions are progressing steadily,and in order to further accelerate these efforts, wehave decided to aim for a 50% reduction, surpassing
the government’s target, and also decided in
September 2022 to expand the scope and raise thetarget values as follows.
(New target values for FY2030)
CO2 emissions down 50％ (versus FY2013, Scope 1&2)

*1

*1 Targeting the Company and its Group companies, Fuji Logistics Co., Ltd.
and Ryoso Transportation Co., Ltd.

We will continue to improve the efficiency oftransportation/delivery in the DP-Cool service and work
to reduce CO2 emissions.
In addition, we are promoting initiatives to visualize andreduce the amount of CO2 emitted from the supply chain
through collaboration with the Group and our partners,
including through a business alliance with K.R.S. Corporationand joint verification tests with Hacobu Co., Ltd.

V O I C E
Toward realizing carbon
neutrality in transportation
Yoshio Aoyagi
Planning & Business Coordination Div.,
Ryoso Transportation Co., Ltd.
Here at Ryoso Transportation Co., Ltd., we installed
Mitsubishi Fuso Truck and Bus Corporation’s “e-Canter,” alight-duty electric truck that is Japan’s first electric wing
vehicle, at the Tokyo Branch (Ota-ku, Tokyo) on December 6,2021 with the aim of achieving carbon neutrality intransportation.
Equipped with six high-voltage lithium-ion battery packs,
the vehicle can travel approximately 100km on a single
charge, and serves as a means of transportation that does
not emit exhaust gas or CO2 and with lower noise levels,
which contribute to addressing noise issues that today’s
cities are faced with.
In addition to reducing the burden on drivers with its low
vibration and prevention of traffic accidents with its safety
equipment, the side walls of the loading platform can bequickly opened and closed with the push of a button, making
it possible to shorten the loading and unloading time. It isalso expected to be effective as a means of addressing theissues of 2024 (regulations related to working hours anddriver shortages, etc.).
As a Mitsubishi Logistics Group company, we will continue
to promote initiatives aimed at resolving social issues as well
as responding to the environment.
(Group company of the Company)

Raising target values
Since we achieved the target values for FY2030, in
September 2022 we decided to raise the target
values as follows.
(New target values for FY2030)
Reduce CO2 emissions from transportation/delivery*2 by 50% (versus FY2018)*2 Targeting transportation with the DP-Cool temperature-controlled pharmaceuticals
delivery service provided by Dia Pharmaceutical Network Co., Ltd.

Mitsubishi Logistics Integrated Report 2022

27

Initiatives for Each of the Six Key Themes

Response to TCFD Recommendations
The Company announced its endorsement of the Task Force on Climate-related Financial Disclosures (TCFD)* in June
2022. Based on the framework of the TCFD recommendations, we disclosed information on four items: “Governance,”“Strategy,” “Risk management,” and “Indicators and targets.”* An abbreviation for Task Force on Climate-related Financial Disclosures. The Task Force was established by the Financial Stability Board (FSB) at the request of the G20 toconsider how climate-related information should be disclosed and how financial institutions should respond.

Information disclosure of four items based on TCFD recommendations
Governance and Risk Management
Roles and composition of each meeting body (as of October 1, 2022)
Meeting body

Role

Members

Board ofDirectors

Supervise initiatives and goal management related tosustainability issues, including climate change matters

Chairperson: Chairman of the Board(currently Representative Director and President due to vacancy)

Executive
Committee

Discuss sustainability issues, including matters related toclimate change, as important management issues

President and Managing Executive Officers(6 persons in total)

Sustainability
Committee

Strategy Meeting:	Deliberate important sustainability issues
Liaison Meeting:	Monitor policies and targets related tosustainability issues
Subcommittee:	Consider countermeasures, including
policy proposals

Chairperson: President
Members: 	Chairman, Managing Executive Officers, andGeneral Managers(Observers: Full-time Corporate Auditors)
Administration: Sustainability Promotion Division

RiskManagement
Committee

Identify, analyze, and consider responses andcountermeasures for Group-wide risks, including risks ofclimate change

Chairperson: Managing Officer responsible for General Affairs
Members: 	General Managers(Observers: Full-time Corporate Auditors)
Administration: General Affairs Division(Sustainability
Committee)
Subcommittee

Responsible for six key themes. Collaborate with businessdivisions to formulate roadmaps, etc., including measures
to address climate change, and plan, formulate, manage,
and promote measures

Establish departments to act as coordinators for eachsubcommittee

Organizational chart (as of October 1, 2022)
Board of Directors
Supervise⬇ ⬆Report

President

Supervise⬇ ⬆ReportSupervise⬇ ⬆Report

Sustainability Committee

Strategy Meeting
Liaison Meeting
Subcommittees

Coordinate/Implement

Business Divisions

28

Affiliated Companies

Mitsubishi Logistics Integrated Report 2022

Share

Risk Management
Committee

Executive Committee

Environmental Initiatives

Strategy

Indicators and targets

Based on below 2°C and 4°C scenarios, we identified
transition risks (risks associated with the transition to a
low-carbon society), physical risks (climate risks
associated with the progress of global warming) andopportunities in the short, medium, and long term, andconsidered the degree of their impact. The mitigation
measures and countermeasures for major risks andopportunities are as follows.

◆ Performance indicators

In terms of transition risks, as one example, it was foundthat the impact from carbon taxes and other taxes basedon the amount of emissions of CO2 and other gases (GHG)
that lead to global warming, and the impact from increases
in the cost of capital investment and facility replacement tocurb the emission of those gases would be significant.
Mitigation measures are to develop Disaster-Resistantand Eco-Friendly Warehouses and propose environmentfriendly transportation/delivery in the Logistics Business,and to develop Disaster-Resistant and Eco-Friendly Office
Buildings and introduce renewable energy in the Real
Estate Business.
◆ Physical risks

In terms of physical risks, it was found that the impact ofa decrease in labor productivity due to heatstroke, etc.
among workers and others, and an increase in the costof introducing measures, such as equipment to prevent
such problems, would be significant.
Mitigation measures will be to further promote highly
efficient work operations, introduce new technologies thatmake it possible to reduce workload, and promote
initiatives to provide a comfortable working environment,
including through a review of workstyles.
◆ Opportunities

In the transition to a low-carbon and decarbonizedsociety, there will be a growing need for services with low
CO2 emissions. In addition, the fact that there will be anincreasing need for temperature-controlled transportation/delivery due to rising temperatures as well as the need forbusiness continuity and the maintenance of supply chainseven under circumstances where there is a greater
frequency of intensified disasters due to climate change
will constitute an opportunity that translates into business
opportunities, and its impact was found to be significant.
Countermeasures on the tangible front will be tocontinue to proactively develop Disaster-Resistant and
Eco-Friendly Warehouses and Disaster-Resistant and
Eco-Friendly Office Buildings. On the intangible front, we
will respond to customer needs by proposing logistics witha low environmental impact, introducing and supplying
renewable energy, enhancing the safety of facilities throughplanned implementation and strengthening of facility
repairs and storm and flood damage countermeasures
based on our experience in dealing with disasters, etc.,
and by providing robust logistics services utilizing ourknowhow, such as in selecting alternative routes andfacilities in the event of a disaster.

see page 26)

CO2 emissions reduction target (FY2030) Figures in < > represent existing targets

50% reduction in CO2 emissions(versus FY2013, Scope 1+2)*1<30% reduction>
50% reduction in CO2 emissions in transportation/delivery*2 (versus FY2018)<20% reduction>*1 Targeting the Company, Fuji Logistics Co., Ltd., and Ryoso Transportation Co.,
Ltd. <Targeting logistics facilities and real estate facilities operated by theCompany and Fuji Logistics Co., Ltd.>*2 Targeting transportation with the DP-Cool temperature-controlled pharmaceuticals
delivery service provided by Dia Pharmaceutical Network Co., Ltd.

◆ Actual results of GHG emissions

Of the GHGs within the scope of the new target values,
actual results of CO2 emissions are as follows. Pleaserefer also to the “Extended version,” which contains dataon CO2 emissions by business.
Scope 1+2 actual results(t-CO2)100,000
82,03080,00060,00040,00020,00075,87773,19765,518

Standard fiscal year◆ Transition risks● Targets
As stated above, targets have been raised (58,73159,568

2020

2021

0
2013

2017

2018

2019

(FY)

Actual results of CO2 emissions by business may beviewed on Mitsubishi Logistics’ Web site in the“Extended version.”
HOME ▶ ESG/SDGs ▶ Integrated Report ▶ Extended version

Future initiatives
From October 2022, the chairman of the Sustainability
Committee will be changed to the President, and all
Managing Executive Officers will become committee
members to strengthen the committee’s functions. We
have also established the Sustainability Promotion
Division as a dedicated division.
Under the new system, we will further promote initiatives
to address the risks and opportunities associated withclimate change.

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Initiatives for Each of the Six Key Themes

Cutting-edge Technology, Innovation
By promoting sophistication, automation, and laborsaving in our logistics and real estate services andworking with customers, partners, and other parties tostandardize services and create platforms, we will
resolve social issues and achieve business growth
toward the realization of a sustainable society in bothour Logistics and Real Estate Businesses.
“SharE Center misato” in Misato City, Saitama Prefecture

Priority measures and measures through business activities◆ Sophistication, automation, and labor-saving in logistics and real estate services
・ Logistics: Optimize warehouse operations and car allocation planning using AI, etc., respond to EC logistics, etc.,
automate equipment in warehouse facilities and make it labor-saving
・ Real estate: Enhance the sophistication and save labor of facility management operations using IT

Performance indicators and targets

DX, IT-related investment
Investment in reformation of services and business models
based on the needs of customers and society using data anddigital technology, and transformation of operations,organizations, processes, and corporate culture/climate
Target values for FY2030

Cumulative investment of ¥50.0 billion for FY2021-FY2030

V O I C E
Commencing operation of “ML
Chain,” a logistics data platform forpharmaceuticals that will contribute to
the stable supply of pharmaceuticals
Takayuki Hayano (left)
Pharmaceutical Team, Warehousing & Distribution Business Div.
Yuki Nishino (right)
Digital Transformation Team, Information Systems Div.
In order to achieve the stringent quality control that is required now more than ever,and to further develop and evolve conventional pharmaceutical distribution services,
the Company developed and started operating “ML Chain,” a logistics platform forpharmaceuticals that will realize the visualization of the entire supply chains andsophisticated quality control. In establishing this platform, we referred to themechanisms that IBM built in a pilot study for the U.S. Food and Drug Administration(FDA). In addition, by adopting IBM’s blockchain technology, this system is capable ofvisualizing various information in the pharmaceutical distribution process while
maintaining the integrity and safety of the data, and sharing this information in real timewith pharmaceutical companies and business operators involved in transportation.
Firstly, in the area of manufacturer logistics (distribution from the manufacturingbases of pharmaceuticals companies to pharmaceuticals wholesalers through theCompany’s distribution bases), in order to focus on the visualization of important
information in the supply chain in real time, including temperature control and location
information, we aim to increase the number of customers using ML Chain and
DP-Cool and room-temperature GDP transportation* provided by Dia Pharmaceutical
Network Co., Ltd., our subsidiary that specializes in the delivery of pharmaceuticals.
Going forward, we aim to expand the use of the platform to international logistics,
and in Japan, we aim to visualize the entire supply chains beyond the framework of
manufacturer logistics.
In the future, we will collaborate with various businesses involved in distribution, andengage in various initiatives with a view to operating ML Chain as a highly versatile
open platform that shares advanced quality control throughout entire supply chains.
* Temperature-controlled transportation that complies with GDP (quality control standards in the distribution
process of pharmaceuticals) for room temperature products (temperature range of 1°C to 30°C)

30Mitsubishi Logistics Integrated Report 2022

Achievements in FY2021
With the aim of improving the efficiency andsophistication of our logistics operations, we
proactively developed initiatives that included thefollowing at our domestic bases: “improved
efficiency and labor savings in warehouse
operations using the latest digital technology
such as AGV, image recognition, and RFID,” and“optimization of worker placement at warehousesites through proprietary systems using AI
technology.”
In addition, in January 2022, we started theoperation of ML Chain, a logistics data platformusing blockchain technology, in order to visualize
the entire supply chains and achieve
sophisticated quality control in pharmaceuticals
logistics.

Initiatives and plans for
FY2022 and beyond
Since 2019, we have been promoting the use of
the latest digital technology in Japan andoverseas in order to improve the efficiency andsophistication of our logistics operations andfacility operations. We will continue to actively
develop bases that take advantage of the latest
technology, as represented by “SharE Center
misato,” a distribution center for e-commerce
opened in Misato City, Saitama Prefecture.
In addition, we will optimize the entire supply
chains and realize sustainable logistics byautomating and saving labor in operational
processes and reducing operational burdens
through the establishment and operation of alogistics data platform.

Partnerships
We believe that co-creation with customers and partners is key
to promoting DX (Digital Transformation). While collaboratingwith startups on initiatives such as using AI to optimize
warehouse operations, we will also continue to collaborate withour customers through various means, including projects
aimed at establishing optimum production and logistics
systems by working with customers to predict demand andsupply, thereby promoting optimization for both sides.

The Company’s booth at“Logis-Tech Tokyo 2021 - 2nd INNOVATION EXPO”

Priority measures and measures through business activities◆ Collaborate with startups and companies in other industries

Optimize development and create new businesses through open innovation with CVC, etc.

Performance indicators and targets

CVC* fund management* An abbreviation for “Corporate Venture Capital.” A
business practice in which companies form fundswith their own corporate capital to invest in andsupport unlisted startups that may be related to theirbusiness or be advantageous for their core businessin the future.
Target values for FY2030

Establish a CVC of ¥5.0 billion

V O I C E
Partnerships with startup
companies
Meiri Ichikawa
Business Coordination Team, Corporate
Planning Div.
One of the missions of the Business Coordination Team, towhich I belong, is to solve various issues and strengthen thecompetitiveness of the services we provide throughcollaboration with startup companies.
As part of this, we invested in and formed a business andcapital alliance with Rapyuta Robotics Co., Ltd., which has
advanced group control technology* and artificial intelligence
technology.
Currently, we are working toward a verification test for
unmanned loading and unloading of cargo at night by linking
an automatic forklift equipped with Rapyuta’s system with avertical transport vehicle. Going forward, we aim to prepare
for future labor shortage issues by applying Rapyuta’s
solutions to more complex operations.
I would like to continue collaborating with various start-up
companies to achieve the goals set out in the MLC2030
Vision and contribute to the Company’s growth.

Achievements in FY2021
In anticipation of synergic benefits of creating new
businesses and improving operational efficiency, we
made LP* investments in VCs (venture capitals) and direct
investments in startups.
Specifically, with the goal of creating innovation, weinvested in a fund that aims to support companies taking on
the challenge of transforming the real estate and logistics
industries (Mercuria BizTech Investment LLP (BizTech Fund),and a fund that invests in venture companies with highly
unique technology and services in areas such as big data,
robotics, health care, infrastructure, food and agriculture(SBI 4+5 Fund).
In addition, as part of our open innovation, we
participated in an acceleration program sponsored byfinancial institutions, and took a step toward reforming
our corporate culture by working from the bottom-up to
resolve internal issues and develop new businesses.
* An abbreviation for “Limited Partner.” Venture investment through investment infunds.

Initiatives and plans for FY2022 and beyond
We will continue to invest in startups and support
operations post collaboration, such as through the capitaland business alliance with Rapyuta Robotics Co., Ltd.
(see news release) and the undertaking of verification
tests with Rapyuta, and also prepare for CVC formation.
As a specific initiative for fiscal 2022, in May, weformed a fund (Mercuria Japan Industrial Growth Support
No. 2 Investment Business LLP) targeting medium-size
domestic companies that have unique technology,
services, and commercial distribution but are facing
challenges with regard to business succession. We willcontinue to address business succession of medium-size
companies that are active in various fields.

* Technology for collectively controlling multiple robots, etc.

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Initiatives for Each of the Six Key Themes

Human Resource Development,
Employee Satisfaction
In April 2021, we introduced a regional system for general employees
to enable a variety of workstyles according to our employees’ lifestyles.
In addition to clarifying and managing the duties of each position, we
will also work on creating environments that support work-life balance
for employees.
At the same time, we will expand our training system toward
Cafeteria at Seishin Distribution Center Phase 2 Building in Kobedeveloping global human resources.

Performance indicators and targets❶ Ratio of regional general employees●
General employment for limited workplace regions
introduced in April 2021 for realizing diverse andflexible workstyles
Target values for FY2030

Ratio of regional general employees 30%❷ Ratio of employees taking child-care●
leave
System that allows male and female workers who areraising a child under the age of 2 to apply to takeleave for child-care until the child reaches the age of 2
Target values for FY2030

Ratio of employees taking child-care leave 60%❸ Ratio of employees with experience●in overseas assignments
General employees with experience in overseas
assignments (including training programs)
Target values for FY2030

Ratio of employees with experience in overseas
assignments 25%

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Mitsubishi Logistics Integrated Report 2022

Strive to improve the environment in which
both employees and the Company can raise
mutual value
The basic philosophy of the Company’s personnel policy
is to assist its employees to grow and improve theirwork-life balance and to assert that both employees andthe Company can raise mutual values through thesustainable growth of the Company.
To realize this philosophy, the Company endeavors to
improve worksite environments so that employees candemonstrate their individuality and competence to theutmost extent with improved motivation and better
workplace environments, through a variety of personnel
and educational systems.

Establish a personnel system that
accommodates a variety of workstyles
The Company strives to improve worksite environments
in which every employee can fully demonstrate his/herindividuality and competence.
◆ Regional system for general employees
In order to achieve the MLC2030 Vision, it is necessary to
encourage the active participation of employees morethan ever, which requires strategic human resource
development and human resource allocation.
As a characteristic of the Company’s Logistics Business,maintaining the certainty and quality of operations at eachsales office, which are our logistics sites, forms the basisof the services we provide to our customers, and thestable allocation of employees who have the experienceand knowledge of those operations is essential.
In recent years, in view of the fact that there have beencases where general employees are unable to accept
transfers due to family circumstances, etc., and it isdifficult for them to carry out their duties without limiting
the areas in which they work, we have established two
types of general employees: “general employees (nolimits on workplace regions)” and “regional generalemployees (limits on workplace regions)” whose aim is tostrengthen the on-site and sales capabilities in eachregion, in order to secure and develop future management
personnel and ensure a work system that is more suitablefor employees to demonstrate their abilities.
Although screening is necessary, the system allows
employees to switch between categories in accordancePriority measures and measures through business activities◆ Develop personnel and welfare programs that value each individual employee
・ Establish a personnel system that accommodates a variety of workstyles
・ Create an environment that helps balance work and life◆ Develop human resources with global perspectives
・ Develop human resources with global perspectives through expansion of training programs, etc.

Achievements in FY2021
with their circumstances. It is expected that this willcontribute to improvements in employee satisfaction.
In fiscal 2021, the first year of its introduction, we again
disseminated information about the regional system forgeneral employees with the aim of promoting the utilizationof the system when recruiting applicants for job changes.
The ratio of regional general employees was 5% as ofMarch 31, 2022.

1. Keep faith in others, and conduct yourself with integrity
and a sense of fairness.
2. Conduct yourself autonomously.
3. Respond flexibly to environmental changes.
4. Demonstrate expertise and act with a sense of creativity.
5. Have a good teamwork spirit and cooperate with yourcolleagues.

Promoting the work-life balance to support thesound development of the next-generation children◆ Training system

Pursuant to the implementation of the Act on
Advancement of Measures to Support Raising NextGeneration Children, the Company formulated the“Ordinary Business Owner Action Plan” and implemented
a child-care leave system, a reduced working hours
system, a nursing care leave system, a general care leavesystem (paid leave) and a family care leave system (paidleave) to assist with the coexistence of employees’
working life and home life. Furthermore, the Company
encourages the enhanced use of annual paid vacations
to reduce working hours in a year and has introduced asystematic granting system (six days per year) of annual
paid vacations under labor-management collaboration.

Create an environment that helps balance workand life◆ Questionnaire survey on child-care leave

In order to promote the creation of an environment inwhich it is easy for employees to take child-care leave,
we conducted an internal survey on child-care leave.
Based on the results of the survey, we will revise ourpersonnel system, conduct internal company training,and encourage employees to take child-care leave.
The ratio of employees who took child-care leave in
fiscal 2021 was 53%.

Endeavor to develop human resources thatcan contribute not only to corporate growth
but also to social development◆ Concept image of ideal human resources

With the “Code of Conduct” in mind, every employee
aims to undertake a role not only in corporate growth but
also in the development of society by conducting himself/
herself in the following manner.

The Company focuses on developing human resourcesthat can precisely respond to internal and external needs.
The Company therefore strives to upgrade employees’
business skills and the organization’s strength throughtraining by service year of employment. At the same time,
the Company offers several training programs to raise
employees’ expertise such as management capabilities,
readiness for globalization and operational capability toenable employees to acquire professional skills in responseto the content of their business duties.

Develop human resources with global perspectives
through expansion of training programs, etc.
We conducted a review to expand the overseas dispatch
program, examined the framework of the new system,
and identified issues for its introduction.
The ratio of employees with experience in overseas
assignments is 16% as of March 31, 2022.

Conduct education and training to improve
IT literacy and skills
In order to realize “the improvement of operational
processes and further utilization of new technologies” set
forth in the MLC2030 Vision, we introduced IT literacy andskill training for participants to acquire IT-related
knowledge. The training was divided into a basic course
and an advanced course, each of which was conducted byhaving participants watch online videos. The basic course,
in particular, was held for all employees and consisted ofbasic knowledge of IT and the basic operation of theCompany’s general-purpose systems, etc.
In addition, we held seminars for the purpose of
training in-house RPA developers, and set up an award
system according to the development results of robots
that have reached the point of actual operation with theaim of further expanding and promoting the use of RPA.
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Initiatives for Each of the Six Key Themes

Initiatives and plans for FY2022 and beyond

Toward human resource development andimproving employee satisfaction
Based on the results of activities in fiscal 2021, we will
mainly work on the following measures in fiscal 2022.
◆ Dissemination of regional system for generalemployees
In addition to continuing efforts to raise awareness of theregional system for general employees, we will work todisseminate the system by collecting opinions throughthe self-declaration system and questionnaires, andreflecting them in operations. In tandem with this system,
we will similarly respond to the operation of the jobchange system.
In addition, we will actively recruit regional generalemployees so that we can respond to diverse workstyles.

◆ Create an environment that helps balance workand life
We will work to raise awareness within the Company of
the Postpartum Papa Child-care Leave (child-care leaveat the time of birth) that will be introduced from October
this year, by holding briefings and other means.
In addition, based on the purpose of the revised Act onChildcare Leave, Caregiver Leave, and Other Measures
for the Welfare of Workers Caring for Children or OtherV O I C E
To promote the taking ofchild-care leave
Yoko Miyazaki
Human Resources Dept.,
Human Resources Div.
Under the Act on Childcare Leave, Caregiver Leave, and Other
Measures for the Welfare of Workers Caring for Children or
Other Family Members, which was revised in June 2021,
companies are required from April 2022 to develop an
employment environment that makes it easy for employees totake child-care leave, such as by providing training andconsultation, and to individually inform employees who areabout to have a child about the child-care leave system andconfirm their intentions. In addition, “Postpartum Papa Childcare Leave” (child-care leave at the time of birth), a new
system to encourage male employees to take child-careleave, was established and will commence in October 2022.
As a result of this revision, it is expected that men who did
not think of child-care as their responsibility and men who
could not say that they wanted to take child-care leave will beable to take child-care leave, and that both men and women
will take the initiative in child-care.
The Company supports men who want to be actively
involved in child-care, such as by disseminating information on
the new system through training, and is working to further
encourage employees to take child-care leave with the aim ofrealizing a working environment where both men and women
can achieve a good work-life balance.

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Mitsubishi Logistics Integrated Report 2022

Family Members, we will conduct training for managers
to encourage male employees to take child-care leave,
and we will also consider a review of the post child-careleave personnel system. At the same time, we will work
to further promote the active participation of women,
including by conducting management training on
reviewing work systems and workstyles necessary forfemale employees who work while raising children toadvance their career development.
In addition, we will introduce a reemployment system(come-back system) for those who retired due to childcare or other reasons.
◆ Develop human resources with global perspectives

through expansion of training programs, etc.
Based on the issues identified in fiscal 2021, we willproceed with a review to expand the overseas dispatch
program.

◆ Conduct an engagement survey
Improving employee satisfaction is identified in“Strengthen the Group management base,” which is oneof the basic policies of the Management Plan (20222024), and from fiscal 2022, we plan to conduct anengagement survey to understand the level of employee
satisfaction and other matters.

Compliance, Human Rights, Gender
We recognize that compliance, human rights, and gender
are fundamental to our business activities, and will strive forconstant verification and improvement of our current efforts.
In addition, we will assume a primary role in ensuring
thorough compliance throughout the comprehensive supply
chain, including Group companies and partners.
Apr. 2021: New employee training

Priority measures and measures throughbusiness activities◆ Promote sincere and fair business activities◆ Ensure thorough compliance, with awarenessof comprehensive supply chains
Implement initiatives for adherence to relevantlaws and regulations and respect for human rights
together with subcontractors

Performance indicators and targets

Response rate for Code of Conduct
questionnaire and CSR questionnaire
Questionnaire on CSR targeting subcontractors, etc.,with close business relationships
Target values for fiscal 2030

Code of Conduct questionnaire and CSR
questionnaire
Response rate: over 90% every year

V O I C E
Publication of the revised
CSR & Compliance Handbook
Atsuko Kida
CSR・Compliance Team, General Affairs Division
Based on the concept of contributing to the realization of asustainable society and fulfilling our corporate social
responsibility, the Group published the CSR & ComplianceHandbook in January 2012. Since this is a number of years
ago, we published a revised edition in May 2022 in order toreflect the changes in the business environment in recent
years. The handbook was distributed to all executives andemployees within the domestic Group.
The format is to provide explanations of CSR andcompliance using case studies, and as part of the teamresponsible for creating the handbook, I tried to devise waysof raising awareness of compliance in everyday business,
including by selecting examples that are familiar to us all.
Every year, we conduct questionnaires linked to the contentsof the handbook, but I would like to refine the questions tofurther improve compliance awareness among executives
and employees.

Achievements in fiscal 2021
In terms of each of the questionnaires set as a performanceindicator, the Code of Conduct questionnaire was subject
to a review in order to improve awareness of compliancewithin the Group. This was the first time we conducted a
CSR questionnaire, and we therefore considered thecontent while incorporating the opinions of branch offices,which are the frontline for our business, compiled
questionnaire questions, selected subcontractors withwhom we have close business relationships, andconducted the questionnaire using a Web-based system.
The response rates for both the Code of Conduct
questionnaire and the CSR questionnaire exceeded 90%,
thereby achieving the target.

Initiatives and plans for fiscal 2022 and beyond
Continuing on with our efforts in fiscal 2021, we willconduct a Code of Conduct questionnaire within theGroup and a CSR questionnaire for subcontractors, etc.,
aiming for a response rate of 90%.
When conducting the Code of Conduct questionnaire,
we will review the inclusion of compliance-related content
deemed necessary at the time, and other content. With
regard to the CSR questionnaire, we will expand the scopefrom the subcontractors selected in the previous fiscal year
to a wider range of companies with an awareness ofcomprehensive supply chains. In the future we willconsider expanding the scope, which is currently limited todomestic companies, to include overseas subcontractors.
In the field of human rights and gender, we arepromoting various measures with the support of external
experts as an initiative for respecting human rights incorporate activities, so-called “business and humanrights.” We are preparing to formulate a human rights
policy and implement human rights due diligence. In the
future, if necessary, we will consider reestablishing andworking on performance indicators and targets other than
the questionnaire implementation rate.
In addition, in May 2022, we revised and published the
CSR & Compliance Handbook, incorporating content
related to compliance, human rights, and gender andfactoring in changes to business risks in recent years.
This was distributed to all executives and employees
see page 43). Throughwithin the domestic Group (initiatives such as these, we will work to improve
compliance awareness.
Mitsubishi Logistics Integrated Report 2022

35

Organizational Governance (Corporate Governance)

Organizational Governance(Corporate Governance)

With regard to our organizational governance, we will explain
our stance on the corporate governance system, the Board of
Directors, our approach to the election of officers, etc., andrisk management, as well as initiatives for maintaining andstrengthening the compliance system, and communication
with stakeholders. You may also refer to the introduction of
officers and skill matrix.

May 2019: Group Management Meeting

Corporate Governance
Basic stance
The Company recognizes the enhancement of corporate
governance as a significant business issue that will enable us
to carry out our social mission and responsibilities as apublicly listed company and to aim for sustainable growthand development. Accordingly, we are working to enhance
the functions of the board of directors and board ofcorporate auditors by appointing outside directors andoutside corporate auditors. We established a Nomination
and Compensation Committee as an advisory body to theBoard of Directors to further enhance the objectivity andtransparency of the procedures for determining the nominationand compensation of directors. In addition, we haveintroduced an executive officer system for the purpose offurther strengthening corporate governance by strengthening
management and supervisory functions, and by improving
management efficiency and accelerating decision making.
Moreover, in order to further promote the separation ofmanagement and business execution, as of June 29, 2022,
we eliminated directors with special titles other than the
Chairman of the Board, positioned the President as an
Executive Officer, and changed the system to one in which
Executive Officers are responsible for business execution.
Furthermore, we are endeavoring to boost corporate
governance through multiple initiatives, such as: establishingan internal control system through drafting the rules ofconduct for our executives and employees, setting up theInternal Control and Compliance Committee, and enhancing
an internal audit system (from April 2022, the Internal Audit
Department is under the direct control of the President);
instituting a risk management system via the Risk
Management Committee and “Initiatives for ESG
Management and the SDGs” through the establishment of
the Sustainability Committee; and, finally, by reinforcing
disclosure through the early publication of financial statements.
(
See the chart of corporate governance system below）

Evaluation of the effectiveness of the Boardof Directors
From 2021, in order to further improve the effectiveness of
the Board of Directors, the Company started conducting
self-assessment questionnaires consisting of questions andfree comment sections for all directors and corporate
auditors regarding the size and composition of the Board of
Directors, the operation of the Board of Directors, the roleand functions of the Board of Directors, collaboration
between supervisory functions and auditing organizations,etc., relationships with shareholders and investors, and the
response to issues and improvements identified in theprevious year. The results of the questionnaires were sharedwith the Board of Directors.
As a result of deliberations at the Board of Directors basedon the results of the questionnaires, it was determined thatthe effectiveness of the Board of Directors in 2022 waslargely ensured. However, it was also determined that it
would be desirable to further enhance the effectiveness of
the Board of Directors by conducting more in-depth
discussions on important matters and management policies,etc., and by considering operations that will lead to moremeaningful deliberations by focusing on key points.
In addition, as future efforts, we will continue to provide
opportunities to explain the Group’s business and issues, andto deepen discussions for improving corporate value, as wellas provide opportunities for outside directors and auditing
bodies, including corporate auditors, to exchange opinions
and share information. We will also reconsider importantmatters and opportunities to be explained in advance tooutside officers, and consider measures to further enhance
discussions on the progress of the management plan.

■ Chart of corporate governance system
General Shareholders Meeting
Board of Directors
Nomination and Compensation Committee

Executive Committee

President
Managing Executive Officers

General Managers’ Meeting

Executive Officers
Respective Divisions, and Chambers ofthe Head Office (General Managers)
6 branches (General Managers)

Group Management Meeting36

52 subsidiaries(including 20 overseas subsidiaries)
15 affiliates

Mitsubishi Logistics Integrated Report 2022

Corporate Auditors

Board of Corporate Auditors

Independent Auditor

Corporate Auditors’ ChamberInternal Control and Compliance Committee
Risk Management Committee
Internal Audit Department

Sustainability Committee

■ Status of concurrent positions and reasons for appointment of outside directors and outside corporate auditors

Position and nameOutside Director

Tatsuo Wakabayashi

Outside Director

Toshifumi Kitazawa

Outside Director

Tadaaki Naito

Outside Director

Tetsuya Shoji

Outside Director

Kazuko Kimura

Outside Corporate Auditor

Mikine Hasegawa
Outside Corporate Auditor

Yohnosuke Yamada
Outside Corporate Auditor

Takao Sato

Reasons for appointment

Significant concurrent positions

Mr. Tatsuo Wakabayashi has long been engaged in the corporate
management of Mitsubishi UFJ Trust and Banking Corporation and holds
abundant knowledge and experience relating to banking and finance, etc.
The Company nominated him in the belief that reflecting his broad insightand invaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capableof supervising the Company’s management and Directors effectively.

Senior Advisor of Mitsubishi UFJ Trustand Banking Corporation
Outside Director of Mitsubishi
Materials Corporation

Mr. Toshifumi Kitazawa has long been engaged in the corporate
management of Tokio Marine & Nichido Fire Insurance Co., Ltd. andholds abundant knowledge and experience relating to risk management,
finance, etc. The Company nominated him in the belief that reflecting his
broad insight and invaluable advice in the Company’s management isbeneficial to the Company’s growth and enhancement of corporate valueand he is capable of supervising the Company’s management andDirectors effectively.

Senior Executive Advisor of Tokio Marine& Nichido Fire Insurance Co., Ltd.
Member of the Board of Directors(Outside Director) and Member of the
Audit & Supervisory Committee of
MUFG Bank, Ltd.
Outside Director of Sekisui House, Ltd.

Mr. Tadaaki Naito has long been engaged in the corporate managementof Nippon Yusen Kabushiki Kaisha and holds abundant knowledge andexperience relating to logistics operations, etc., which is the Company’s
mainstay business. The Company nominated him in the belief thatreflecting his broad insight and invaluable advice in the Company’s
management is beneficial to the Company’s growth and enhancement ofcorporate value and he is capable of supervising the Company’s
management and Directors effectively.

Chairman, Director of Nippon Yusen
Kabushiki Kaisha

Mr. Tetsuya Shoji has long been engaged in the corporate management of
NTT Communications Corporation and holds abundant knowledge andexperience relating to business operation innovation, etc. utilizing new
digital technologies which the Company has been promoting. The
Company nominated him in the belief that reflecting his broad insight andinvaluable advice in the Company’s management is beneficial to theCompany’s growth and enhancement of corporate value and he is capableof supervising the Company’s management and Directors effectively.

Corporate Advisor of NTT
Communications Corporation
Outside Director of Sapporo Holdings
LimitedOutside Director of Hitachi Zosen
Corporation
Outside Director of Japan Tobacco Inc.
Outside Director of circlace Inc.

Ms. Kazuko Kimura, as a Ph.D. holder in pharmaceutical sciences, hasserved in prominent posts at external organizations such as the World
Health Organization after working for the Ministry of Health and Welfare
and as professor at National University Corporation Kanazawa University.
In addition, she holds abundant knowledge and experience in the field of
medical and health care, etc., which are the Company’s core and focus
areas. The Company nominated her in the belief that reflecting her broad
insight and invaluable advice from the viewpoint of diversity in the
Company’s management is beneficial to the Company’s growth andenhancement of corporate value and she is capable of supervising theCompany’s management and Directors effectively.

Specially Appointed Professor of
Graduate School of Medical Sciencesof National University Corporation
Kanazawa University
External Director of Takara Bio Inc.
Representative Director of Medicines
Security Workshop

The Company nominated him in order that he may utilize his abundant
knowledge and broad insight based on many years of experience attrading companies, etc. for the Company’s audits.

ーThe Company nominated him in order that he may utilize his experience
as a lawyer for the Company’s audits by providing appropriate opinions
regarding the execution of duties by directors from an objective
standpoint.

ー

The Company nominated him in order that he may utilize his experience
as a certified public accountant for the Company’s audits by providing
appropriate opinions regarding the execution of duties by directors froman objective standpoint.

Outside Director of IX Knowledge Inc.

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37

Organizational Governance (Corporate Governance)

Officer election process
1. Management Executives and Directors
The Company has a total of not more than 14 directors incharge of business execution and independent outside
directors (13 at present) who comprise the Board of
Directors to enable the Board of Directors to engage insufficient deliberations based on diverse opinions and to
make swift and rational decisions.
Directors are required to be persons of outstanding
character and broad insight who can be expected tocontribute to the establishment and execution ofmanagement strategy based on the businessenvironment and management issues. Candidates for
management executives and other directors in charge ofbusiness execution possess a wealth of professional
knowledge and experience in business operations, andcandidates for outside directors possess a wealth ofexperience and knowledge in their professional fields andhave the qualities to effectively provide advice andsupervision from an independent and objective
standpoint.
In determining the reappointment or new appointmentof management executives and directors, the Nomination
and Compensation Committee objectively verifies
whether management executives and executive directors
have been appropriately considered in light of the above
selection criteria, and report their opinions to the Board of
Directors. For candidates for outside directors, theNomination and Compensation Committee evaluates theeffectiveness of each candidate for reappointment or new
appointment based on the above selection criteria, andreports their opinions to the Board of Directors. In
particular, with regard to the new appointment of outside
directors, the Company considers the necessary
qualities, etc. at the time of each appointment, compiles
a list of candidates, and updates this list each year fromthe perspective of ensuring the appropriate compositionof the Board of Directors required for the sustainablegrowth of the Company. When it becomes necessary to
appoint a new outside director, the Nomination andCompensation Committee interviews candidates selectedfrom a list of candidates based on the above policy, thecomposition of the Board of Directors, and the suitabilityof persons as outside directors, after which it selects
candidates and makes a report to the Board of Directors.
The Board of Directors deliberates these reports atmeetings of the Board of Directors attended also byoutside directors and outside corporate auditors,
appoints management executives by resolution of theBoard of Directors, and determines candidates for
directors.
In the event that a management executive commits an
act in violation of public order or morals, faces difficulties
in continuing to execute his or her duties for healthreasons, or significantly harms corporate value due to theneglect of his or her duties, the Board of Directors shallconsider submitting a proposal regarding the dismissal of
said management executive to a meeting of the Board of
Directors held with the attendance of outside directors
and outside corporate auditors as necessary, and shall,prior to submitting the proposal, consult with theNomination and Compensation Committee and explain
the reasons for the dismissal to outside directors andoutside corporate auditors other than members of theCommittee.

38

Mitsubishi Logistics Integrated Report 2022

2. Corporate Auditors
The Company’s Board of Corporate Auditors consist of a
total of five corporate auditors, consisting of two internal
corporate auditors and three independent outside
corporate auditors, in order to enhance audits andincrease the independence of the corporate auditor
system from management.
Corporate auditors are required to be persons ofoutstanding character and broad insight. Candidates forinternal corporate auditors are familiar with the actual
management of the Company, and candidates for outside
corporate auditors have a wealth of professional
knowledge and experience in their professional fields,
including their industry, legal affairs, and accounting.
Based on this policy, Representative Directors preparea draft list of candidates for corporate auditors andproposes it to the Board of Directors with the consent of
the Board of Corporate Auditors. This is deliberated on
by a meeting of the Board of Directors held with theattendance of outside directors and outside corporate
auditors, and the candidates for corporate auditors are
determined by resolution of the Board of Directors.

Policy for determining the amount andcalculation method of remuneration for officers
The Company resolved the policy for determining detailsof compensation for each director at the meeting of theBoard of Directors based on suggestions from theNomination and Compensation Committee upon
consulting with the Committee.
◆ Policy for determining the amount of basic

compensation for each director, details of
performance-based compensation and nonmonetarycompensation and calculation method of theiramount or figures (including policy for determining
timing and conditions of providing compensation)
Compensation for directors shall consist of basic
compensation, performance-based compensation, andstock compensation at amounts based on their duties
and the compensation level of society in general.
Basic compensation shall be paid according to theposition of each director as monthly fixed compensation
within the limit of compensation determined at a general
meeting of shareholders.
Performance-based compensation shall be bonuses
for directors excluding outside directors. Payment is to bemade at a specific timing every year at an amountdetermined according to the performance indicators of
the previous fiscal year within the compensation limit thatis common with basic compensation. Operating income
and ordinary income reflect profits from ordinary businessactivities in general and are deemed appropriate as
quantitative indicators, and ROE (return on equity) that isdeemed appropriate as a capital efficiency indicator shallbe adopted as the performance indicators for bonuses.
The amount of bonuses shall be determined based on a
calculation table providing the amounts according to thelevel of the performance indicators of the previous fiscal
year. In addition, a certain degree of addition or
subtraction can be made based on the evaluation of
initiatives for issues set for each individual.
Stock compensation is intended to incentivize
recipients to sustainably increase the Company’s
corporate value and promote the further sharing of value

with shareholders. Payment is to be made at a specifictiming every year at an amount deemed reasonable inlight of the purpose within the compensation limit that iscommon with basic compensation to directors excluding
outside directors as compensation for granting restricted
stock. The stock cannot be disposed of until the recipient
retires or resigns from the position of the Company’s
director or other positions decided by the Company’s
Board of Directors.
◆ Policy for determining the ratio of monetarycompensation, performance-based compensation,and nonmonetary compensation for each director
The payment amount per type of compensation for eachdirector shall be determined so that the ratio per type ofcompensation for each director will function as an
appropriate incentive commensurate with the duties
expected for each position.
To link compensation with medium- to long-termbusiness performance, the Company’s shares shall beacquired through the officer stock ownership plan using
contributions from monthly compensation and bonuses
at amounts not less than those set for each position. All
the shares purchased shall be held throughout theservice period and until one year after retirement.

◆ Determination of details of compensation for eachdirector
Based on the above policy, matters such as thecompensation limit to be submitted to the general meetingof shareholders, drafts of proposals regarding stockcompensation, and allotment of each type ofcompensation for each individual shall be discussed by the
Nomination and Compensation Committee. The
Committee was established as an advisory body to theBoard of Directors mainly comprising independent outside
directors to further enhance the objectivity andtransparency of the procedures for determining thenomination and compensation of directors. Based on thesuggestions of the Committee, the Board of Directors shalldiscuss and resolve the matter at its meetings attended byoutside directors and outside corporate auditors.

Policy for determining the amount of compensation
for Corporate Auditors and its calculation method
Compensation for Corporate Auditors is determined bydiscussion between Corporate Auditors within thecompensation limit resolved at a general meeting ofshareholders.

Resolution of the general meeting ofshareholders concerning compensation for
Directors and Corporate Auditors
The upper limit on total compensation for Directors is 600
million yen per year (of which, 100 million yen per year for
Outside Directors; resolved at the 216th Annual General
Meeting of Shareholders held on June 27, 2019; notincluding the portion of employees’ salary for Directors
who concurrently serve as employees), with 120 million
yen per year for Corporate Auditors (resolved at the216th Annual General Meeting of Shareholders held on
June 27, 2019). There were 15 Directors (including 4
Outside Directors) and 5 Corporate Auditors at theconclusion of the 216th Annual General Meeting of
Shareholders held on June 27, 2019.
Within the scope of compensation limit for Directors
stated above, the Company provides monetarycompensation for granting restricted stock to Directors
excluding Outside Directors (150 million yen per year for
up to 100 thousand shares of the Company’s common
stock; resolved at the 217th Annual General Meeting of
Shareholders held on June 26, 2020). There were 11
Directors excluding Outside Directors at the conclusion of
the 217th Annual General Meeting of Shareholders heldon June 26, 2020.

Total amount of compensation for each officer category, total amount of compensation by type,and number of eligible officers
Total amount per type of compensation
Category

Total amount ofcompensation

Basic
compensation

Bonuses(performancebased
compensation)

Restricted stockcompensation(nonmonetarycompensation)

Retirement
benefits

Number of
eligible
executives

Directors(of which, Outside
Directors)¥434 million(¥46 million)¥349 million(¥46 million)¥38 million¥45 million

(―)

(―)

―
(―)

16
(5)

Corporate auditors(of which, Outside
Corporate Auditors)¥78 million(¥42 million)¥78 million(¥42 million)

―
(―)

―
(―)

―
(―)

5
(3)

*1 Bonuses are performance-based compensation to be paid within the compensation limit that is common with basic compensation. Operating income and ordinary income thatreflect profits from ordinary business activities in general and is deemed appropriate as a quantitative indicator, and ROE (return on equity) that is deemed appropriate as acapital efficiency indicator shall be adopted as the performance indicators for bonuses. The amount of bonuses shall be determined based on a calculation table providing theamounts according to the level of the performance indicators of the previous fiscal year. In addition, a certain degree of addition or subtraction can be made based on theevaluation of initiatives for issues set for each individual. Consolidated operating income for the 219th term was 18,144 million yen, consolidated ordinary income was 23,151
million yen, and consolidated ROE was 5.4%. The amount of bonuses above is the amount expensed as bonuses for the fiscal year under review.
*2 The amount of the restricted stock compensation above is the amount expensed as restricted stock compensation for the fiscal year under review.
*3 In addition to the payment amounts mentioned above, the portion of employees’ salary of 57 million yen were paid to Directors concurrently serving as employees (4 persons
during the fiscal year under review).

Mitsubishi Logistics Integrated Report 2022

39

Organizational Governance (Corporate Governance)

Risk Management
Main risks and countermeasures
Risks

40

Risk explanations and countermeasures

Changes inthe businessenvironment

The Logistics Business and the Real Estate Business are affected by changes in the businessenvironment, with the Logistics Business affected by both economic fluctuations in Japan andoverseas, and logistics rationalization and business restructuring by corporate clients, while the Real
Estate Business is affected by the supply and demand balance and market trends in the rental officemarket.
The Group’s primary businesses are the Logistics Business with the Warehousing and Distribution
Business as its core, and the Real Estate Business, which focuses on the leasing of buildings, and theGroup strives for stable growth through planned capital investment and the provision of sophisticatedservices.

Damage tobusiness assets(warehouses,
rental buildings,etc.) caused bynatural disasters

In the event of a large-scale natural disaster, such as an earthquake, typhoon, heavy rainfall, flood,tsunami, or volcanic eruption, there is a risk of serious damage that cannot be covered by insurance,
which could affect the financial position and operating results of the Group.
With regard to business assets such as warehouses and rental buildings, in addition to earthquake
resistance and seismic isolation measures for buildings, external insurance coverage, and provision ofreserve for private insurance, we take necessary measures including daily inspections andmaintenance, the compilation and updating of manuals in the event of a crisis such as a natural
disaster, and the holding of regular training.

Reduction inmarket value andprofitability ofbusiness assets(land, buildings,
etc.)

In some cases, the amount of investment cannot be expected to be recovered due to a decline in thefair value of land or buildings, etc., or a decline in profitability as a result of the application of the
Accounting Standard for Impairment of Fixed Assets.
The Group may recognize an impairment loss to reflect the possibility of recovery so as not to carrylosses forward in the future.
In the fiscal year ended March 31, 2022, we recorded an impairment loss (¥36 million) as an
extraordinary loss on the Group’s warehouse facilities (buildings) which had declined in profitability.

Fair value
fluctuations ofinvestment
securities

The Group’s investment securities as of the end of the fiscal year under review stood at ¥145,185
million, consisting mainly of shares in its business partners, primarily for the purpose of maintaining
and strengthening business relationships. However, the application of the Accounting Standard for
Financial Instruments means we are affected by fluctuations in market prices, such as share prices.
The Company will recognize an impairment loss on available-for-sale securities with a market price if
their fair value falls by 30% or more compared with the acquisition price, taking into consideration thepossibility of recovery. To provide for losses resulting from a decline in the substantial price of stock,etc. without a market price, allowance is recorded as allowance for investment loss taking into
account the possibility of recovery if total net assets of the issuing company fall below the book value.

Compliance risk

Compliance risks cannot be completely eliminated, and in the event of a situation that violates laws
and regulations, the resultant administrative sanctions such as surcharges, criminal sanctions,requests from business partners, etc. for compensation for damages, and loss of credibility could
affect the financial position and operating results of the Group.
The Group has formulated the Code of Conduct that stipulates compliance with laws and regulations
and the exclusion of antisocial forces as the social norms for employees in executing their duties. The
Group is working to instill awareness of compliance based on corporate ethics in every employee andensure thorough compliance with laws and regulations and various rules through the employee’s
self-check on the status of compliance with the Code of Conduct, as well as by thoroughly promoting
training on compliance. Furthermore, through the establishment of the Internal Control andCompliance Committee, the implementation status of internal control functions and the complianceconditions shall be evaluated in an aim to enhance the internal controls and compliance. In addition,
we have established an Internal Reporting Hotline (a helpline) that clearly stipulates the prohibition ofunfavorable treatment of reporting persons, and are making efforts to prevent or promptly discoverand correct actions that may infringe upon laws and regulations.

Mitsubishi Logistics Integrated Report 2022

RisksRisk explanations and countermeasures

Country risk inoverseas businessdevelopment

Overseas, the Company has a total of 20 subsidiaries in North America, China and Asia, and Europe(2 in North America, 16 in China and Asia, and 2 in Europe), which are engaged in the logistics
business, including warehousing and international transportation. In overseas business development,
we endeavor to practice management activities in accordance with local laws and regulations andbusiness customs, etc., and in the event that the investee acquires non-current assets such as
warehouse facilities, we will consider the degree of country risk and take out overseas investment
insurance.

Exchange rate
fluctuations

In preparing the Group’s consolidated financial statements, the financial statements of overseas
consolidated subsidiaries are converted into yen. Fluctuations in the exchange rate due to theCompany and some consolidated subsidiaries having foreign currency-denominated receivables andpayables could affect the financial position and operating results of the Group.

Tightening of
regulations onenvironmental
conservation, etc.

Going forward, in the event that the tightening of related laws and regulations and other regulations
necessitates new capital investment, the increase in funds and cost burden could affect the financial
position and operating results of the Group.
Recognizing the importance of environmental issues, in addition to establishing the Environmental
Policy and the Environmental Voluntary Plan, the Group has adopted environmental measures as a key
theme in our Initiatives for ESG Management and the SDGs, and is promoting business activities thattake the global environment into consideration. Specifically, in addition to working on energy-saving
measures for warehouses and real estate rental facilities by constructing Disaster-Resistant and
Eco-Friendly Warehouses and Disaster-Resistant and Eco-Friendly Office Buildings, etc., we areendeavoring to introduce cargo handling equipment with a low environmental impact and develop
services that reduce the environmental impact in collaboration with customers and subcontractors.
see page 26).
For our response to climate change, please refer to Environmental Initiatives (Information
security risk

If business activities are suspended or information is leaked due to a computer virus, unauthorizedaccess from an external source including cyber attacks, disaster, or inappropriate information
management, the resultant claims for compensation for damages by business partners and the loss ofcredibility could affect the financial position and operating results of the Group.
The Group utilizes various information technologies to promote business and improve businessefficiency, and handles business partners’ confidential information and customers’ personal
information in its business activities.
In the management of information systems and information networks, we focus on stable operations
and security measures, take necessary steps such as appropriate server management and information
backups, and work to reduce security risks through information security education such as training fortargeted attacks.

Risk fromCOVID-19

In the fiscal year ended March 31, 2022, the global spread of COVID-19 had a major impact on thedomestic and overseas economies. If containment of COVID-19 extends beyond April 2022, theLogistics Business will experience sluggish cargo movements and the Real Estate Business will facean increased vacancy rate due to tenants moving out, which could significantly affect the businessactivities and business results of the Group.
While the Group will endeavor to minimize the effect, the impact from the spread of COVID-19 is highly
uncertain and the future course of the pandemic could affect the financial position and operating
results of the Group.

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Organizational Governance (Corporate Governance)

Initiatives for maintaining and strengthening the compliance system
Confirming the appropriateness ofoperations via internal control

Holding Internal Control and Compliance
Committee meetings

The Board of Directors of the Company resolved the“Basic Policy on the Improvement of an Internal Control
System” to ensure the appropriate execution of duties byexecutives and regular employees and theappropriateness of corporate affairs.
Furthermore, the Company improves the systems
necessary for ensuring the appropriateness of financial
reporting and prepares and submits the Internal Control
Report regarding the evaluation of the effectiveness ofinternal control relating to financial reporting in accordancewith the Financial Instruments and Exchange Act.

In September 2006, we established the CSR andCompliance Committee and promoted CSR activities
within the Group. In fiscal 2021, matters relating to CSR
were transferred to the Sustainability Committee, andmatters relating to compliance were transferred to theInternal Control and Compliance Committee in order tofurther strengthen these initiatives.
The Internal Control and Compliance Committee
meeting held in May 2022 discussed the content of theInternal Control Report and compliance improvements
based on self-checks of the Code of Conduct
compliance status, and also discussed trends related towhistleblowing as well as the Company’s response andfuture initiatives.
Branch General Managers who are close to theworkplace also participate in meetings of the Internal
Control and Compliance Committee, which helps
maintain and strengthen the compliance system throughvarious responses.

Disseminating the awareness of compliance
The Group endeavors to instill awareness of compliancebased on corporate ethics in every employee through theemployee’s self-check (Code of Conduct questionnaire)on the status of complying with the Code of Conduct,
which was formulated as the social norms for employees
in executing their duties, as well as by thoroughly
promoting training on compliance.
The self-check on the status of compliance previously
targeted the Company and domestic Group companies.
Effective from fiscal 2013, the scope of the self-checkhas been extended to cover overseas Group companies
using English texts.
In addition, we aim to disseminate complianceawareness and establish good working environments byusing various training opportunities.

Business processes are confirmed via
internal audit
The internal audit of the Company is performed mainly by
the Audit Division in accordance with internal audit
regulations and an internal audit plan. The audit is
supported by branch auditors and audit assistants
positioned at the Head Office and respective branches.
The purpose of the internal audit is to precisely grasp thestatus of corporate affairs and financial position so that it
can be used to prevent fraud or errors, for rationalizationof management, improvement of business operations
and raising operating efficiency. Since April 2022, internal
audits have been under the direct control of the
President, and the Audit Division reports the results ofaudits regarding the Company and subsidiaries to the
President. The Audit Division also supports follow-up
checks on any issues noted in the audit results, andreports the results to the President.
The Audit Division keeps close contact with thecorporate auditors and provides them with internal audit
information to cooperate with the corporate auditors’audits.

Confirming the process for bonded operations,etc., under the Authorized Warehouse
Operators’ Program
The Authorized Warehouse Operators’ Program, one of
the AEO Systems*, is a system for certifying managers ofbonded warehouses and bonded factories as authorized
warehouse operators after they meet set conditions
concerning compliance and other regulations. Theseauthorizations ensure preferential treatment such as
simplified procedures and exemptions from permit fees,
etc. and the Company received approval as an
authorized warehouse operator and further enhanced
compliance activities in customs-related processes andall other import/export services. In April 2016, theauthorization was renewed, and we will continue to strive
to provide highly reliable and dependable logistics
services for our customers.
Meanwhile, the Company acquired certification as
Authorized Customs Brokers
under the AEO System in June
2017, and each Group company
on the dates shown in the table.
An authorized customs broker isa customs clearance operator,
subject to various preferential
privileges, which is authorized by
the customs office to arrange forsecurity management system
regarding cargo andcompanywide compliancesystem. The Company strives tofurther improve the quality ofCertificate of AEO Customs
customer service going forward. Broker (The Company)* Systems that provide measures that ease and simplify customs procedures forbusiness operators who have constructed cargo security management
frameworks in compliance with laws and regulations, aiming both to secure andsmoothen international logistics security, as well as to enhance Japan’sinternational competitiveness.
The policy for implementing and constructing AEO Systems is set within the SAFE
Framework of Standards to Secure and Facilitate Global Trade adopted by the
WCO (World Customs Organization). Japan’s AEO Systems comply with said
policy. (Source: Japan Customs Web site)

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Mitsubishi Logistics Integrated Report 2022

■ Status of acquisition of certification as Authorized Customs
Broker by the Group
Company nameDate of certification

Monryo Transport Corporation

September 2012

Keihin Naigai Forwarding Co., Ltd.

June 2014

Ryoyo Transportation Co., Ltd.

April 2017

Mitsubishi Logistics Corporation

June 2017

Naigai Forwarding Co., Ltd.

February 2018

Fuji Logistics Co., Ltd.

May 2018

Unitrans Ltd.

November 2019

Supporting overseas business fromthe perspective of the entire GroupIn April 2021, we reorganized the International Business
Coordination Chamber as the Overseas Business
Planning & Coordination Division, and established anoverseas business team with the aim of improving andstrengthening the management system for our overseas
business in response to globalization.
The Company has until now been providing support forthe corporate divisions of each overseas-affiliatedcompany through the International Business Coordination
Chamber, and has worked to ensure appropriate businessactivities overseas. However, we will review and provide
support for the strengthening of the compliance systems
and risk management systems at each overseas-affiliatedcompany, led by the overseas business team, consider
and evaluate investment projects overseas, and further
focus on improving corporate governance for all overseas
Group companies. We will also work on strengthening themanagement systems necessary for the growth of theCompany’s overseas business.

Initiatives for improving compliance awarenessCSR & Compliance Handbook

CSR and Compliance Awareness Survey

The Group published the CSR & Compliance Handbook
in January 2011 but based on subsequent changes inthe business environment, we published a revised editionin May 2022 and distributed it to all executives andemployees within the Company and domestic Group
companies.
In addition to using the handbook as a reference whenunsure about what to do during
day-to-day work, recipients arealso using it as a teachingmaterial in the workplace bysharing opinions using casestudies, thereby helping to
improve compliance awareness.
We have also listed corporate
ethics help line rules and awhistleblowing consultation
mechanism to help increaseawareness of the internal reporting
CSR & Compliancesee page 44).
system (We provide Web-based surveys on awareness targeting
the Company and domestic Group companies based on
the CSR & Compliance Handbook and the Integrated
Report to improve awareness of CSR compliance.
By asking questions about familiar issues, every
employee thinks about what to do and comes up with ananswer, which leads to the development of complianceawareness.

Handbook

Training on CSR and Compliance
For CSR, we conducted training concerning the SDGs
using web-based videos for all employees of theCompany and domestic Group companies in order topromote initiatives for ESG management and the SDGs
throughout the Group.
As for compliance, we use a web-based system toconfirm the methods for managing and handling relevant
documents under the Act against Delay in Payment of
Subcontract Proceeds, etc., and the obligations andprohibitions of the main subcontracting enterprise, and
we also conduct training on the prevention of insider
trading using an e-learning format, aimed at raisingawareness of compliance with laws and regulations.

Mitsubishi Logistics Integrated Report 2022

43

Organizational Governance (Corporate Governance)

Initiatives for communication with stakeholders
Information disclosures
The Group strives to disclose information that should be
disclosed to shareholders in a timely and appropriatemanner, such as by issuing news releases and posting
information on the Company’s website.
In addition, we have an IR information page on theofficial Company website. We use the information page toprovide IR information, such as management planningand policy, stock information, an IR calendar, financial
data, and IR information such as flash reports, securities
reports, English version of annual reports, business
reports, and consolidated results briefings.
We also have an English version of the IR information
page available for overseas shareholders and investors,
and are working towards more access to information
disclosure for overseas and international stakeholders.

Dialogue between shareholders/investors,
analysts and top management◆ Easy-to-understand shareholders’ meetings

When we hold a shareholders’ meeting, we strive toprovide easy-to-understand information for theconvenience of attending shareholders by using video
business reports with narration.
◆ Results briefing

The Company holds results briefings twice a year (Mayand November) for investors and analysts (the May 2021
results briefing was canceled due to COVID-19). In
addition to the explanation of the settled accounting
results, the top management of the Company explains
management policies and the progress of management
plans, conducts Q&A and transmits a variety ofmanagement information. We are active in encouraging
dialogue with market players not only throughtransmission of the information desired by investors andanalysts but also by integrating the feedback of usefulviews therefrom in its actual business judgment.

Results briefing for analysts

44

Mitsubishi Logistics Integrated Report 2022

◆ Dialogue with institutional investors
In order to contribute to the sustainable growth of theCompany and the medium- to long-term improvement ofour corporate value, we continuously hold dialogue
between institutional investors and the management
team. The main topics are ESG and sustainability, andcapital policies, etc., and opinions and concerns that are
identified through the dialogue are appropriately reported
to the Company as feedback.

You may view the materials for the results briefings on
Mitsubishi Logistics’ Web site in the IR Information page.
HOME ▶ IR Information ▶ IR materials ▶ Presentation

Internal reporting system
To ensure early detection of actions that violate legal
ordinances or corporate regulations, as well as actions
that are in danger of violating such rules, the Mitsubishi
Logistics Group has established a corporate ethics helpline (Contact: General Affairs Division, Personnel Division,
Overseas Business Planning & Coordination Division,etc.) as an internal whistleblowing and consultation
mechanism to reinforce compliance management.
To raise the degree of recognition and encourage useof the system, at the time of the Code of Conduct
questionnaire conducted in December 2021, we
examined whether all executives and regular employeesof the Group were familiar with our internal reporting
system and whether they intended to use the system.
Consequently, it was confirmed that almost all the
respondents expressed an affirmative opinion, suggestingwidespread recognition of the system.
We subsequently revised the corporate ethics help line
rules in response to the revision of the Whistleblower
Protection Act in June 2022. At that time, we again
disseminated the rules throughout the Group to raiseawareness of the system.
In fiscal 2021, the corporate ethics help line received
and responded to 14 internal reports. Not all issues
required corrective action but we will continue to takeappropriate measures that lead to corrective action.

Introduction of Officers
Directors

Masao Fujikura

Hidechika Saito(Representative Director and President) March 20, 1959

(Representative Director and Managing Executive Officer) July 5, 1964

April 1982
Joined the Company
June 2012	General Manager, International Business Coordination Chamber
April 2015
General Manager, Osaka Branch
June 2016 Director and General Manager, Osaka Branch
April 2017	Managing Director; and General Manager, Osaka BranchPresident
April 2018
June 2021 President and Chief Executive Officer
June 2022 Representative Director and President (current position)

April 1987
Joined the Company
April 2018
General Manager, Osaka Branch
April 2020	General Manager, International Transportation Business Division
June 2021	Executive Officer and General Manager, International Transportation
Business Division
Managing Executive Officer
April 2022
June 2022	Representative Director and Managing Executive Officer (current position)

Hitoshi Wakabayashi(Director and Managing Executive Officer) January 22, 1960
April 1982
Joined the Company
June 2012	General Manager, Warehousing & Distribution Business Division
April 2015	Chairman of the Board of Mitsubishi Logistics China Co., Ltd.
April 2016	General Manager, Warehousing & Distribution Business Division of
the Company
June 2016	Director and General Manager, Warehousing & Distribution Business
DivisionManaging Director
April 2017
April 2019	Managing Director; and General Manager, Warehousing &Distribution Business Division
April 2020
Managing Director
June 2021 Managing Director and Managing Executive Officer
June 2022 Director and Managing Executive Officer (current position)

Yasushi Saito(Director and Managing Executive Officer) October 16, 1958
April 1982
Joined the Company
June 2011 General Manager, Accounting & Financing Division
June 2016 Director and General Manager, Accounting & Financing Division
April 2018	Managing Director; and General Manager, Accounting & Financing Division
June 2018 Managing Director
June 2021 Managing Director and Managing Executive Officer
June 2022 Director and Managing Executive Officer (current position)

Shinji Kimura(Director and Managing Executive Officer) July 18, 1958
April 1982
Joined the Company
April 2014
General Manager, Personnel Division
April 2016	General Manager, General Affairs Division, Corporate
Communications Chamber and Personnel Division
June 2017	Director and General Manager, General Affairs Division, Corporate
Communications Chamber and Personnel Division
Managing Director
April 2018
April 2020	Managing Director; and General Manager, Technical Division
Managing Director
April 2021
June 2021 Managing Director and Managing Executive Officer
June 2022 Director and Managing Executive Officer (current position)

Munenori Kimura(Director and Managing Executive Officer) June 14, 1964
April 1987
Joined the Company
April 2018
General Manager, Yokohama Branch
April 2020	General Manager, Planning & Business Coordination Division
June 2021	Executive Officer and General Manager, Corporate Planning Division
April 2022	Managing Executive Officer and General Manager, International
Transportation Business Division
June 2022	Director and Managing Executive Officer; and General Manager,
International Transportation Business Division (current position)

Tatsuo Wakabayashi (Outside Director) September 29, 1952
April 1977
Joined Mitsubishi Trust and Banking Corporation
April 2012	President of Mitsubishi UFJ Trust and Banking Corporation
April 2013
Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
December 2013	
President and Chairman of Mitsubishi UFJ Trust and Banking Corporation
June 2015	Director; Deputy Chairman of Mitsubishi UFJ Financial Group, Inc.
April 2016	Chairman of Mitsubishi UFJ Trust and Banking Corporation; Directorof Mitsubishi UFJ Financial Group, Inc.
June 2016 Retired from Director of Mitsubishi UFJ Financial Group, Inc.
April 2020	Senior Advisor of Mitsubishi UFJ Trust and Banking Corporation(current position)
June 2019 Director of the Company (current position)

Toshifumi Kitazawa (Outside Director) November 18, 1953
April 1977
Joined The Tokio Marine and Fire Insurance Co., Ltd.
April 2016	President & Chief Executive Officer of Tokio Marine & Nichido Fire
Insurance Co., Ltd.
June 2016 Director of Tokio Marine Holdings, Inc.
April 2019	Vice Chairman of the Board of Tokio Marine & Nichido Fire
Insurance Co., Ltd.
June 2019 Retired from Director of Tokio Marine Holdings, Inc.
April 2022	Senior Executive Advisor of Tokio Marine & Nichido Fire InsuranceCo., Ltd. (current position)
June 2019 Director of the Company (current position)

Tadaaki Naito (Outside Director) September 30, 1955
April 1978
Joined Nippon Yusen Kabushiki Kaisha
April 2015	President, Representative Director, President Corporate Officer of
Nippon Yusen Kabushiki Kaisha
June 2019	Chairman, Director, Chairman Corporate Officer of Nippon Yusen
Kabushiki Kaisha
June 2020	Chairman, Director, Chairman and Executive Officer of Nippon Yusen
Kabushiki Kaisha
April 2022	Chairman, Director of Nippon Yusen Kabushiki Kaisha (current position)
June 2020 Director of the Company (current position)

Tetsuya Shoji (Outside Director) February 28, 1954
April 1977	Joined Nippon Telegraph and Telephone Public Corporation
June 2009	Director of the General Affairs Department of Nippon Telegraph andTelephone Corporation
June 2012	Senior Executive Vice President of NTT Communications Corporation
June 2015	President and CEO of NTT Communications Corporation
June 2020	Corporate Advisor of NTT Communications Corporation (current position)
June 2021 Director of the Company (current position)

Mitsubishi Logistics Integrated Report 2022

45

Organizational Governance (Corporate Governance)

Kazuko Kimura (Outside Director) May 1, 1951

Tatsushi Nakashima

April 1976
Joined the Ministry of Health and Welfare
July 1996	Drug Management and Policy Department of World HealthOrganization (on secondment)
July 1999 	Organization for Pharmaceutical Safety and Research (onsecondment)
April 2000	Professor of Drug Management and Policy Department, Institute ofMedical, Pharmaceutical and Health Sciences, Kanazawa University
April 2017	Professor Emeritus of National University Corporation Kanazawa
University (current position)
October 2017	Specially Appointed Professor of Graduate School of Medical
Sciences of National University Corporation Kanazawa University(current position)
June 2021 Director of the Company (current position)(Director and Senior Executive Officer) November 29, 1957
April 1976
Joined the Company
April 2017
General Manager, Nagoya Branch
June 2018 Director and General Manager, Nagoya Branch
April 2020
Director and General Manager, Yokohama Branch
June 2021	Director, Senior Executive Officer and General Manager, Yokohama
Branch (current position)

Akira Yamao (Director and Senior Executive Officer) June 13, 1960
April 1983
Joined the Company
April 2015	General Manager, Planning & Business Coordination Division
June 2019	Director and General Manager, Planning & Business Coordination Division
April 2020
Director and General Manager, Osaka Branch
June 2021	Director, Senior Executive Officer and General Manager, Osaka
Branch (current position)

Corporate Auditors

Tohru Watanabe

Yohnosuke Yamada (Outside Corporate Auditor) May 2, 1959

(Standing Corporate Auditor) (full time) June 24, 1949

April 1989	Registered as lawyer (Dai-Ichi Tokyo Bar Association)
Joined Nagashima & Ohno (currently Nagashima Ohno & Tsunematsu)
	
October 1989	Joined Yamada Brothers (currently Yamada, Goya & Suzuki) (current
position)
June 2004 Corporate Auditor of the Company (current position)

April 1972
Joined the Company
June 2001 General Manager, Accounting & Financing Division
June 2003	Director; Assistant Managing Officer (responsible for Accounting &Financing) and General Manager, Accounting & Financing Division
June 2004	Managing Director; and General Manager, Accounting & Financing Division
June 2006 Managing Director
June 2008 Senior Managing Director
October 2010	Senior Managing Director; and General Manager, Planning &Business Coordination Division
January 2011	Senior Managing Director
June 2011 Standing Corporate Auditor (full time) (current position)

Mikine Hasegawa(Outside Corporate Auditor) (full time) July 5, 1961
April 1985
Joined Mitsubishi Corporation
June 2010 CFO of Mitsubishi Corporation India Pvt. Ltd.
November 2013 Corporate Auditor of MC Healthcare, Inc.
June 2016 Corporate Auditor of Mitsubishi Corporation Life Sciences Limited
April 2019	Retired from Corporate Auditor of Mitsubishi Corporation Life
Sciences Limited
Attached to Corporate Division of Mitsubishi Corporation
May 2019
June 2019 Corporate Auditor of the Company (full time) (current position)

Takao Sato (Outside Corporate Auditor) July 17, 1954
March 1988
May 2003
July 2007
June 2009
July 2014
June 2016
July 2017
June 2020

Registered as Certified Public Accountant
Representative Partner of Asahi & Co. (currently KPMG AZSA LLC)
Board Member of KPMG AZSA & Co.
Retired from Board Member of KPMG AZSA & Co.
Auditor of KPMG AZSA LLC
Retired from Auditor of KPMG AZSA LLC
Representative of Takao Sato Accounting Office (current position)
Corporate Auditor of the Company (current position)

Junya Miura (Corporate Auditor) July 22, 1959
April 1983
Joined the Company
June 2016 General Manager, Audit Division
June 2020 Corporate Auditor of the Company (current position)
June 2020	Full-time Corporate Auditor of Ryoso Transportation Co., Ltd. (current position)

Executive Officers (as of June 30, 2021)
Senior Executive Officer Akio Miura(General Manager, Nagoya Branch)

Executive Officer Naoyuki Inamo(General Manager, Accounting & Financing Division)

Senior Executive Officer Masanori Maekawa(General Manager, General Affairs Division and Corporate
Communications Chamber)

Executive Officer Takashi Mukai(General Manager, Real Estate Division)

Executive Officer Manabu Kusuyama(General Manager, Information Systems Division)

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Mitsubishi Logistics Integrated Report 2022

Executive Officer Shiro Ochi
(General Manager, Corporate Planning Division)

The expertise and experience of each Director are (skill matrix)
Expertise and Experience
Name

Masao Fujikura

Hitoshi Wakabayashi

Yasushi Saito

Shinji Kimura

Munenori Kimura

Hidechika Saito

Current Positionat the Company

Outside Director

Toshifumi Kitazawa

Outside Director

Tadaaki Naito

Outside Director

Tetsuya Shoji

Outside Director

Kazuko Kimura

Outside Director

Akira Yamao

Marketing

Legal Affairs,
ESG andCompliance
Sustainability and Risk
Management

Technology

Contribution
to theCompany’s
Growth*Representative
Director andPresident
Director andManaging
Executive Officer
Director andManaging
Executive Officer
Director andManaging
Executive Officer
Director andManaging
Executive Officer
Representative
Director andManaging
Executive Officer

Tatsuo Wakabayashi

Tatsushi Nakashima

Corporate Finance andManagement Accounting

Director andSenior Executive
Officer
Director andSenior Executive
Officer* Contribution to the Company’s Growth: MLC2030 Vision “Supply chains in the medical/health care,” “Expand overseas business,” and “Strengthen organization and develop
human resources,” etc.
(Note) This table does not represent all the skills that each Director possesses.

Mitsubishi Logistics Integrated Report 2022

47

Statement Supporting the UN Global Compact
Corporate Philosophy
Engage in sincere and fair businessStatement Supporting
the UN Global Compact
The Group promotes its initiatives for ESG
management and the SDGs pursuant to
the UN Global Compact’s 10 principles.

activities to secure appropriate profitsand promote steady growth,
appropriately compensating
our stakeholders while contributing
to the realization of an affluent andsustainable society.

Practice of the UN Global Compact’s 10 principles
The Group agreed to adhere to the
UN Global Compact (hereinafter“UNGC”) and endorsed approval in
May 2014.
The UNGC is a voluntary
corporate responsibility initiative forbusinesses that are aiming forsustainable growth as a responsible
member of society. The UNGC asks companies tovoluntarily participate in creating a global framework totake creative leadership.
At the World Economic Forum in Davos, Switzerland in
1999, Kofi Annan, then Secretary-General of the United
Nations, proposed that companies should observe the
10 principles in the areas of human rights, labor, theenvironment and anti-corruption to solve various
problems that could occur due to internationalization andthe global expansion of businesses. In July 2000, the
UNGC was launched at the UN Headquarters in New
York. As of July 2022, approximately 16,500 companies
and organizations around the world were participating in
the UNGC.
Based on its “Code of Conduct,” the Group will strive
to practice the UNGC’s 10 principles as a good memberof international society.

Global Compact Network Japan’s Web site
https://www.ungcjn.org/index.html

48

Mitsubishi Logistics Integrated Report 2022

UNGC’s 10 principles

Human
RightsPrinciple 1: Businesses should support and respect theprotection of internationally proclaimed
human rights; andPrinciple 2: Make sure that they are not complicit inhuman rights abuses.

Labor

Principle 3: Businesses should uphold the freedom of
association and the effective recognition of
the right to collective bargaining;
Principle 4: The elimination of all forms of forced andcompulsory labor;
Principle 5: The effective abolition of child labor; andPrinciple 6: The elimination of discrimination in respect of
employment and occupation.

Principle 7: Businesses should support a precautionary
approach to environmental challenges;
Principle 8: Undertake initiatives to promote greater
Environment
environmental responsibility; andPrinciple 9: Encourage the development and diffusion ofenvironmentally friendly technologies.
AntiPrinciple 10: Businesses should work against corruption in
Corruption
all its forms, including extortion and bribery.

■ Company Profile (As of March 31, 2022)
Company name

Mitsubishi Logistics Corporation

Head OfficeNihonbashi Dia Building, 19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8630, Japan

Establishment

April 15, 1887

Capital¥22,393 million

Revenue (fiscal 2021)

Consolidated: ¥257.2 billion

The number of employees of 4,732
the Mitsubishi Logistics Group

Non-consolidated: ¥184.1 billion(excluding 45 workers on leave to work outside the Group, 1,195 temporary staff and
1,308 employees on loan/dispatched from outside the Group)

The number of employees of
the Company

1,014(excluding 103 employees on leave to work for other companies, 183 temporary staff and
597 employees on loan/dispatched from inside and outside the Group)

Branches

Tokyo, Yokohama, Nagoya, Osaka, Kobe, Fukuoka

Major Businesses

Logistics
Real Estate

Companies in the scopeof consolidation(as of August 31, 2022)

Warehousing; trucking; port and harbor transportation; international transportation; marine
freight transportation; customs clearance; development, sales, management and administration of logistics information systems; etc.
Buying, selling, leasing and management of real estate; contracting of construction work, its
design and supervision; operation of parking lots; etc.

Consolidated subsidiaries (48 companies)
Tohoku Ryoso Transportation Co., Ltd., Sairyo Service Co., Ltd., Dia Pharmaceutical Network Co., Ltd., Tokyo Dia Service Co., Ltd.,Dia Systems Corporation, Ryoso Transportation Co., Ltd., Unitrans Ltd., Keihin Naigai Forwarding Co., Ltd., Touryo Kigyo Co., Ltd.,
Fuji Logistics Co., Ltd., Tokyo Juki Transport Co., Ltd., SII Logistics Inc., Fuji Logistics Support Co., Ltd., Kinko Service Co., Ltd.,
Chubu Trade Warehousing Co., Ltd., Meiryo Kigyo Co., Ltd., Ryoyo Transportation Co., Ltd., Kyokuryo Warehouse Co., Ltd.,
Hanryo Kigyo Co., Ltd., Shinryo Koun Co., Ltd., Naigai Forwarding Co., Ltd., Kyushu Ryoso Transportation Co., Ltd., Monryo Transport Corporation, Hakuryo Koun Co., Ltd., Seiho Kaiun Kaisha, Ltd., Saryo Service Co., Ltd., Mitsubishi Logistics America Corporation,
Mitsubishi Warehouse California Corporation, Mitsubishi Logistics Europe B.V., Fuji Logistics Europe B.V., Mitsubishi Logistics China Co.,
Ltd., Shanghai Qingke Warehouse Management Co., Ltd., Shanghai Linghua Logistics Co., Ltd., Shanghai Linghua Qingsheng Logistics
Co., Ltd. Shanghai Lingyun Global Forwarding Co., Ltd., Fuji Logistics (China) Co., Ltd., Fuji Logistics (Shanghai) Co., Ltd.,
Mitsubishi Logistics Hong Kong Ltd., Fuji Logistics (H.K.) Co., Ltd., Mitsubishi Logistics Thailand Co., Ltd., P.T. Mitsubishi Logistics Indonesia, P.T. DIA-JAYA FORWARDING INDONESIA, Fuji Logistics Malaysia SDN.BHD., Dia Buil-Tech Co., Ltd., Yokohama Dia Building Management
Corporation, Osaka Dia Buil-Tech Co., Ltd., Kobe Dia Maintenance Co., Ltd., T’ACT Co., Ltd.

Subsidiaries and Affiliates Accounted for by the Equity Method (3 companies)
MY Terminals Holdings, Limited, Kusatsu Soko Co., Ltd., Jupiter Global Limited■ Stock Information (as of March 31, 2022)
Status of stocks
Authorized shares
Number of shares issued
Number of shareholders
Stock exchange listing
Securities code

Classification by types of shareholders
Securities Companies 1.9%

220,000,000
87,960,739
7,203
Prime Market of the Tokyo Stock Exchange
9301

Major shareholders
Number of shares held Shareholding(Thousands)
ratio (%)
The Master Trust Bank of Japan, Ltd. (trust account)
17,46221.5
Meiji Yasuda Life Insurance Company
5,153
6.3
Custody Bank of Japan, Ltd. (trust account)
5,133
6.3
MITSUBISHI ESTATE CO., LTD.
3,665
4.5
STATE STREET BANK AND TRUST COMPANY 505001
2,405
3.0
Tokyo Marine & Nichido Fire Insurance Co., Ltd.
2,041
2.5
AGC Inc.
1,657
2.0
MUFG Bank, Ltd.
1,505
1.9
TAKENAKA CORPORATION
1,505
1.9
The Nomura Trust and Banking Co., Ltd. (trust funds for retirement
1,414
1.7
benefits, Mitsubishi UFJ Trust and Banking Corporation account)
Shareholder’s nameNote: 1 In addition to the above, the Company holds 6,751 thousand shares of treasury shares.
Note: 2 MUFG BANK, Ltd. have set 750,000 Mitsubishi Logistics’ shares as trust funds for
retirement benefits for which voting rights are reserved, in addition to the shares stated in
the table above.
Note: 3 The “Shareholding ratio” is calculated after excluding treasury shares (6,751,940 shares).
Note: 4 As of May 20, 2022, 6,000,000 treasury shares have been retired.

Individuals and Others 7.0%

Other Corporationsin Japan
21.4%
Foreign Corporations, etc. 18.1%
Treasury Shares 7.7%

Financial Institutions
43.9%

Dividend payouts/Payout ratio
(¥)

100

■Interim ■Year-end

80
60

0

80

34.1
23.3

45

40
20

Payout ratio

43.7

21

30

14
7
2017

15
2018

60

60

30

30
13.0

30

30

2019

2020

36.5
41

(%)

50

82

40

41
27.4

30
20

39

41

2021

0
2022 (fiscal year)

10(Plan)* The Company carried out a reverse stock split at a ratio of 1 share for every 2
shares of common stock, with an effective date of October 1, 2017. Accordingly,
the year-end dividend for fiscal 2017 is an amount that takes into account thisreverse stock split.

Changes in share price (as of August 31, 2022)
Share price
(¥)

4,000

3,000

2,000
Trading volume(million shares)

20

10

4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8 9 101112 1 2 3 4 5 6 7 8
2016
2017
2018
2019
2020
2021
2022

0

* The Company carried out a reverse stock split at a ratio of 1 share for every 2 shares of common stock, with an effective date of October 1, 2017. Accordingly, the share priceand trading volume prior to September 2017 are calculated taking into account this reverse stock split.

Mitsubishi Logistics Integrated Report 2022

49

Sustainability Promotion Team,
Sustainability Promotion Division
Nihonbashi Dia Building
19-1, Nihonbashi 1-chome, Chuo-ku, Tokyo 103-8630, Japan
TEL: +81-3-3278-6451
FAX: +81-3-3278-6694

Extended version
The following are some data related to the Mitsubishi Logistics Integrated Report 2022, which was collected at the end of fiscal 2021.

Environment
Environmental initiatives-related data (by business)*Basic unit denominator (figures from Act on Rationalizing Energy Use, etc.) uses figure that have strong correlations with each business.

Unit
Warehousing
and Distribution
Business

OverlandTransportation
Business

Port and Harbor
Transportation
Business

Real EstateBusiness

Fiscal 2019

Fiscal 2020

Fiscal 2021

Basic unit denominator

Thousand m2<Floor area>

1,578

1,601

1,655

CO2 emissions

Thousand t-CO2

27.9

26.8

28.0

CO2 emissions basic
unit

2

kg-CO2/m

17.7

16.7

16.9

Basic unit denominator

Million km<Total transportation
distance>

3.8

3.2

3.6

CO2 emissions

Thousand t-CO2

3.4

2.9

3.1

CO2 emissions basic
unit

kg-CO2/thousand km

904.7

885.9

872.5

Basic unit denominator

Thousand tons
<Handling tons>

48

51

111

CO2 emissions

t-CO2

6

5

24

CO2 emissions basic
unit

kg-CO2/thousand tons

124.2

98.9

215.6

Basic unit denominator

Thousand m2<Operational area>

681

676

651

CO2 emissions

Thousand t-CO2

34.2

29.1

28.4

CO2 emissions basic
unit

kg-CO2/m

50.2

43.0

43.6

Thousand t-CO2

65.5

58.7

59.6

CO2 emissions

2

Environmental initiatives-related data (by usage, by emission type)
Water use (water supply, sewage)

Electricity use

Fuel use (City gas, LP (Liquefied Petroleum)gas, kerosene, heavy oil, diesel oil, gasoline)(Thousand m3)(Million kWh)

(Thousand GJ)

1,000

200

100

845

800

637

600

618

150

132

124

125

100

400

0

2019

2020

2021 (Fiscal year)

0

74.7

80.0

2020

2021 (Fiscal year)

60
40

50

200

88.6

80

20
2019

2020

2021 (Fiscal year)

0

2019

Heat use (Heated water, cold water, vapor)

CO2 emissions

Waste emissions (tons)(Thousand GJ)(Thousand t-CO2)(Thousand tons)

100

100

2.0

76.1

80

56.7

60

60.3

80

40

40

20

20

0

2019

2020

2021 (Fiscal year)

Waste emissions (m3)(Thousand m )
3

5.0
4.0

3.8

4.2

3.2

3.0
2.0
1.0
0

2019

2020

2021 (Fiscal year)

65.5

60

0

58.7

59.6

1.8

2.0
1.7

1.5
1.0
0.5

2019

2020

2021 (Fiscal year)

0

2019

2020

2021 (Fiscal year)* Calculation standard● Volume related to electricity usage, fuel usage, heat usage, CO emissions and basic unit denominator from the2
Warehousing and Distribution Business, the Port and Harbor Transportation Business and the Real Estate Business are based on the reported values in the Company’s report based on the Act on Rationalizing Energy Use.
● The International Transportation Business is included in the Warehouse and Distribution Business, given the small
number of operating sites.
● Although the Overland Transportation Business is not under the Act on Rationalizing Energy Use, fuel usage, CO2emissions and basic unit denominator were calculated for the Company’s major trucking subsidiary (Ryoso
Transportation Co., Ltd.) based on the standard in the Act on Rationalizing Energy Use.
● Business sites for the Port and Harbor Transportation Business were restricted to two places where the Company
is in charge of transportation referenced to the Act on Rationalizing Energy Use.
● For electricity usage and CO emissions, the reported amounts for the Company’s subsidiary in the logistics
2business (Fuji Logistics Co., Ltd. under the Act on Rationalizing Energy Use) were added.
● The CO emission volume was calculated based on the electricity, fuel and heat volume used under the standard
2of the Act on Rationalizing Energy Use.
● For water use, the volume of water used by the Company is indicated. The waste emission shows the volume ofwaste emitted by part of the Company (excluding the Real Estate Business, etc.) and by some of the Group companies.

Calculated leakage amount offluorocarbons

Number of facilities covered by the
Logistics Comprehensive Efficiency Act

Number of facilities that have obtained
CASBEE* Rank A certification or above(t-CO2)(facilities)(facilities)

1,000

20

20

15

15

719

800

664

600
400

11

10

10

361

11

0

2019

2020

5

0

2021 (Fiscal year)

17

10

5

200

17
14

2019

2020

2021 (Fiscal year)

Change of total gas mileage at all operational sites of Ryoso Transportation Co., Ltd.
(fiscal 2006 to fiscal 2021)
(Unit: km/L)
Fiscal year

2006

2008

2009

2010

2011

2012

2013

2014

Vehicles forbusiness use

2.45(100.0)2.59(105.6)

2.63(107.5)

2.58(105.5)2.59(105.7)2.52(102.9)2.48(101.3)

2.53(103.4)

Fiscal year

2015

2016

2017

2018

2019

2020

2021

Vehicles forbusiness use

2.62(107.0)2.65(108.2)2.70(110.3)2.67(109.1)2.67(109.2)3.20(130.6)2.68(109.4)

0
2019
2020
*
Comprehensive Assessment
Environment Efficiency

DP-Cool service per-basic unit CO2
emission(kg-CO2/(t･km))
1.60

1.49

1.40

1.24

1.20

1.00

1.00

Parentheses indicate index numbers setting the mileage for fiscal 2006 as 100.0.
(km/L)
140

2021 (Fiscal year)
System for Built

0

2019

2020

2021 (Fiscal year)

130.6

130
120

107.5

110

100.0

100
90

2006

105.6
2008

101.3

105.5
2009

2010

110.3

107.0

105.7

2011

2012

2013

2014

2015

2016

2017

Society■ Men(persons)

900■ Women

952

996

1,014

0

341

360

366

611

2019

636

2020

648

■ Women30

02021 (Fiscal year)

Number of Group employees

Number of new graduate recruits(persons)(persons)

5,000

4,466

4,625

4,732

40

18.0
17.0

30.0

7

2019

2020

2021 (Fiscal year)

2019
2020
2021
2022* (Fiscal year)* The figure for fiscal 2022 is as of April 1, 2022

(years)

5

25.0
19.0

20.0
10.0
0

● Overall

15.0

16.8

16.1
15.4

14.0
2019

2020

2021 (Fiscal year)

0

● Men

17.3

16.0

15.0

19

0

50.0

5

1

25

(%)

40.0

8

12
29

Average length of service(non-consolidated)

21

162021 (Fiscal year)31

14

Ratio of mid-career recruits to regular
employees

20

15

2020

39

22

21

26

2019

■ Women

51

20

1,000
0

■ Men

60

47

3,000

2021 (Fiscal year)■ Men(persons)

10

2020

2,000

Number of mid-career recruits

20

2019

4,000

600
300

2018

Figures for Mitsubishi Logistics Corporation only, unless otherwise specified

Number of non-consolidated employees
1,200

109.4

109.1 109.2

108.2

103.4

102.9

2019

15.7

● Women

16.9

15.7

15.1

15.1

2020

2021 (Fiscal year)

Mitsubishi Logistics Integrated Report 2022

Extended version
Ratio of female managers

Number of employees with disabilities/
Ratio of employees with disabilities

Monthly average overtime(%)(persons) ■ Number of employees with disabilities (%)● Ratio of employees with disabilities50
2.50(hours)

5.0
4.0

40

2.7

3.0

20

1.0

10
2019

2020

2021 (Fiscal year)

1.84

2.00

2.00
1.50

30

2.0

0

1.92

15

16

15

1.00
0.50

0
2019
2020
* As of June 1, each year

2021 (Fiscal year*)

Number of employees taking child-care
leave

(%)

(persons)

60.0

■ Men

51.2

60.0

10
9

2020

2021 (Fiscal year)

13.55

0

2019

2020

● Overall

(%)

0

9

1

2019

2020

● Men

● Women

83

53
50

1

2021 (Fiscal year)

123
100

16

10

16.45

Ratio of employees taking child-care
leave

100

10

2019

16.55

10.00

22
20

20.0

20.00

150

40.0

0

■ Women

30

56.3

30.00

0

Ratio of employees taking paid leave

80.0

40.00

6

0

2021 (Fiscal year)

32

34

4

5

2019

2020

21

2021 (Fiscal year)

Number of employees using reduced
working hours system

Number of employees using nursing
care leave system

Number of employees using generalcare leave system(persons)(persons)(persons)

40

28

30

30
22

20

5

50

4

40

3

30

2

10
2019

2020

2021 (Fiscal year)

0

0

0

2019

2020

2021 (Fiscal year)

Ratio of new employees retained after
three years(persons)(%)● Overall

● Men

100.0

14

15

10

10

98.0
96.0

10

94.0

5

95.6

95.2

96.6

95.7
94.7

2019

2020

2021 (Fiscal year)

Ratio of employees undergoing stresschecks
(%)
100.0
90.0
80.0

79.3

82.1

79.3

70.0
0

2019

2020

2021 (Fiscal year)

0

0

2019

(%)

100.0

100.0

97.9
96.2

2020

2021 (Fiscal year)

Ratio of employees undergoing healthcheckups● Women

99.0

98.5

98.5
97.9

98.0
97.0

94.4

92.0

0

20

10

Number of employees using familycare leave system
20

31

20

1

1

0

46

96.0
2019

2020

2021 (Fiscal year)

0

2019

2020

2021 (Fiscal year)

GovernanceAttendance at meetings of the Boardof Directors by outside directors

Attendance at meetings of the Board of
Directors by outside corporate auditors

Attendance at meetings of the Board of
Corporate Auditors by outside corporate
auditors

(%)

(%)

(%)

100.0

100.0

100.0

100.0

100.0

100.0

100.0

95.0

95.0

95.0

90.0

90.0

85.0

85.0

85.0

80.0

80.0

80.0

0

0

90.0

86.0

2019

2020

2021 (Fiscal year)

Number of directors■ Men■ Women

20

15

0

14

0

2019

2020

2021 (Fiscal year)

38.0

27.0

5

4

2020

2021 (Fiscal year)

0

0

2019

3

Number of people who participated in
the Code of Conduct questionnaire■ In-house ■ Domestic Group companies■ Overseas Group companies

4,336

4,404

4,416

2,646

2,647

2,657

4,000
3,000

75

84

73

2,000
1,000
0

2019

1,682

2020

1,686

0

1

2020

2021 (Fiscal year)

10.0

2021 (Fiscal year)

0

Figures for Mitsubishi Logistics Corporation only, unless otherwise specified

Number of people who participated in the
CSR and compliance awareness survey(persons)■ In-house ■ Domestic Group companies

5,000
4,000
3,000
2,000

1,606

5

2020

Governance (compliance, etc.)

5,000

2019

20.0

5

(persons)

0

30.0

21.0

1

10

2019

100.0

(persons) ■ Men ■ Women(%)● Ratio of independent outside directors
20
40.0
15

13

10

0

100.0

Number of independent outside directors/
Ratio of independent outside directors(persons)

15

100.0

100.0

1,000
0

2021 (Fiscal year)

Number of people who received
compliance education*(persons)
10,000

3,476

3,600

3,569

8,742

9,187

9,251

8,000
6,000

1,943

1,918

1,533

1,682

1,653

2019

2020

2021 (Fiscal year)

1,916

4,000
2,000
0

2019
2020
2021 (Fiscal year)* Total number of participants (cumulative number ofparticipants during each fiscal year) for all Group companies

Number of participants in human rights
training

Number of persons who participated in compliancelecture for prevention of insider trading

Number of respondents to information
security questionnaire*(persons)(persons)(persons)

60

100

49

43

40

80

4,000

88
67

58

60

2019
2020*
2021 (Fiscal year)* Not held due to COVID-19.
Education provided separately by methods otherthan group training sessions.

Number of persons who participated incompliance lecture for the Act against Delayin Payment of Subcontract Proceeds, etc.
(persons)■ In-house ■ Domestic Group companies

2,500
2,000
1,500

1,951

2,061

2,151

1,097

1,155

1,259

0

2019

2020

906

892

2019

2020

2021 (Fiscal year)

0

2019
2020
* Includes Group companies

2021 (Fiscal year)(cases)
20

14
11

10

854

2021 (Fiscal year)

Number of reports made to the helpline(Internal Reporting Hotline)*

15

1,000
500

0

3,531

1,000

20
0

3,526

2,000

40

20

3,315

3,000

7

5
0

2019
2020
2021 (Fiscal year)* Includes reports from Group companies

Mitsubishi Logistics Integrated Report 2022

Mitsubishi Logistics Corporation Integrated Report 2022

GRI Standards reference table(Lists mainly “Core” options)◆ General Disclosures
Disclosure
number

Disclosure contents

Reference
page number

Contents

1. Organizational Profile
102-1

a. Name of the organization.

P. 49

Company Profile

102-2

a. A description of the organization’s activities.
b. Primary brands, products and services, including an explanation of any products or services that are banned incertain markets.

P. 10-13

Introduction of Businesses

102-3

a. Location of the organization’s headquarters.

P. 49

Company Profile

102-4

a. Number of countries where the organization operates, and the names of countries where it has significant operations.

P. 49

Company Profile

102-5

a. Nature of ownership and legal form.

P. 49

Company Profile

102-6

a. Markets served, including:i. geographic locations where products and services are offered;ii. sectors served;
iii. types of customers and beneficiaries.

P. 49

Company Profile

102-7

a. Scale of the organization, including:i. total number of employees;
ii. total number of operations;iii.	net sales (for private sector organizations) or net revenues (for public sector organizations);iv.	total capitalization (for private sector organizations) broken down in terms of debt and equity;
v. quantity of products or services provided.

P. 8-9P. 49

At a Glance
Company Profile

102-8

a. Total number of employees by employment contract (permanent and temporary), by gender.
b. Total number of employees by employment contract (permanent and temporary), by region.
c. Total number of employees by employment type (full-time and part-time), by gender.
d. Whether a significant portion of the organization’s activities are performed by workers who are not employees. If
applicable, a description of the nature and scale of work performed by workers who are not employees.
e. Any significant variations in the numbers reported in Disclosures 102-8-a、102-8-b、and 102-8-c (such as seasonalvariations in the tourism or agricultural industries).
f. An explanation of how the data have been compiled, including any assumptions made.

P. 49

Company Profile

102-9

a. A description of the organization’s supply chain, including its main elements as they relate to the organization’s
activities, primary brands, products, and services.

P. 10-13

Introduction of Businesses

102-10a. Significant changes to the organization’s size, structure, ownership, or supply chain, including:i.	Changes in the location of, or changes in, operations, including facility openings, closings, and expansions;ii.	Changes in the share capital structure and other capital formation, maintenance, and alteration operations (forprivate sector organizations);iii. 	Changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers, including
selection and termination.

P. 24-25

Opening of Tsukuba Logistics
Center by Fuji Logistics Co., Ltd.
Opening of Ibaraki Distribution
Center No. 5 in Osaka(planned for October 2022)

P. 36-47
P. 24-29

Organizational Governance
Safety, Security, Disaster
Response, Environmental
Initiatives, and Response to
TCFD Recommendations

102-11a. Whether and how the organization applies the Precautionary Principle or approach.

102-12a. A list of externally-developed economic, environmental and social charters, principles, or other initiatives to which theorganization subscribes or which it endorses.

P. 48

Statement Supporting the UN
Global Compact

102-13a. A list of the main memberships of industry or other associations, and national or international advocacy organizations.

――P. 4-7
P. 14-19

Top Message
Initiatives for ESG Management and the SDGs

2. Strategy
102-14a. A statement from the most senior decision-maker of the organization (such as CEO, chair, or equivalent senior
position) about the relevance of sustainability to the organization and its strategy for addressing sustainability.

3. Ethics and integrity
102-16a. A description of the organization’s values, principles, standards, and norms of behavior.

P. 14-23

Initiatives for ESG Management and the SDGs,
The MLC2030 Vision, and theManagement Plan

P. 36-47
P. 14, 28, 36

Organizational governance
Sustainability Committee

4. Governance102-18a. Governance structure of the organization, including committees of the highest governance body.
b. Committees responsible for decision-making on economic, environmental, and social topics.

Mitsubishi Logistics Corporation Integrated Report 2022

GRI Standards reference table (Lists mainly “Core” options)Disclosure
number

Disclosure contents

Reference
page number

Contents――

5. Stakeholder engagement102-40a. A list of stakeholder groups engaged by the organization.

102-41a. Percentage of total employees covered by collective bargaining agreements.

――

P. 14-19

Initiatives for ESG Management and the SDGs
Initiatives for each of the six
key themes

102-42a. The basis for identifying and selecting stakeholders with whom to engage.

102-43a. The organization’s approach to stakeholder engagement, including frequency of engagement by type and by
stakeholder group, and an indication of whether any of the engagement was undertaken specifically as part of thereport preparation process.

――102-44a. Key topics and concerns that have been raised through stakeholder engagement, including:i.	how the organization has responded to those key topics and concerns, including through its reporting;ii. the stakeholder groups that raised each of the key topics and concerns.

――

P. 24-35

6. Reporting practice102-45a. A list of all entities included in the organization’s consolidated financial statements or equivalent documents.
b. Whether any entity included in the organization’s consolidated financial statements or equivalent documents is notcovered by the report.

P. 49

Company Profile

102-46a. An explanation of the process for defining the report content and the topic Boundaries.
b. An explanation of how the organization has implemented the Reporting Principles for defining report content.

P. 1

Editorial Policy

102-47a. A list of the material topics identified in the process for defining report content.

102-48a. The effect of any restatements of information given in previous reports, and the reasons for such restatements.

P. 17-18
P. 24-35

Six key themes
Initiatives for each of the six
key themes――

102-49a. Significant changes from previous reporting periods in the list of material topics and topic Boundaries.

――

102-50a. Reporting period for the information provided.

P. 1

Editorial Policy

102-51a. If applicable, the date of the most recent previous report.

P. 1

Editorial Policy

102-52

a. Reporting cycle.

P. 1

Editorial Policy

102-53a. The contact point for questions regarding the report or its contents.

P. 1

Editorial Policy

102-54a. The claim made by the organization, if it has prepared a report in accordance with the GRI Standards, either:i.	‘This report has been prepared in accordance with the GRI Standards; Core option’;
ii.	‘This report has been prepared in accordance with the GRI Standards: Comprehensive option.’――102-55a. The GRI content index, which specifies each of the GRI standards used and lists all disclosures included in the report.
b. For each disclosure, the content index shall include:i. the number of the disclosure (for disclosures covered by the GRI Standards);ii.	the page number(s) or URL(s) where the information can be found, either within the report or in other publishedmaterials;
iii. if applicable, and where permitted, the reason(s) for omission when a required disclosure cannot be made.

――102-56a. A description of the organization’s policy and current practice with regard to seeking external assurance for thereport.
b. If the report has been externally assured:i.	A reference to the external assurance report, statements, or opinions. If not included in the assurance reportaccompanying the sustainability report, a description of what has and what has not been assured and on what
basis, including the assurance standards used, the level of assurance obtained, and any limitations of theassurance process;ii. The relationship between the organization and the assurance provider;iii.	Whether and how the highest governance body or senior executives are involved in seeking external assurance
for the organization’s sustainability report.

――

Reference
page number

Contents

P. 14-19

Initiatives for ESG
Management and the SDGs

◆ Management Approach
Disclosure
number

Disclosure contents

General requirements for reporting the management approach

103-1

a. An explanation of why the topic is material.
b. The Boundary for the material topic, which includes a description of:i. where the impacts occur;ii.	the organization’s involvement with the impacts. For example, whether the organization has caused orcontributed to the impacts, or is directly linked to the impacts through its business relationships.
c. Any specific limitation regarding the topic Boundary.